Re: That defeats the whole purpose of leasing - Saab 9-5 Bulletin Board - Saabnet.com
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Re: That defeats the whole purpose of leasing
Posted by keeton (more from keeton) on Mon, 25 Apr 2005 18:44:49
In Reply to: Mike, does Saab ever put FMV buyouts clauses in, Allan, Mon, 25 Apr 2005 18:25:47
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One of the protections of leasing is the predetermined residual. Typically, it should be the projected wholesale value of your car at term end but sometimes it's not. A higher than FMV residual can actually benefit you since it will lower your payments for the lease term.
If I can remember correctly, a FMV lease is also called an open-end lease. It is almost never done for retail vehicle purchases.
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