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Thread: Residual Car Purchase

  1. #1
    Gold Member Singhms's Avatar
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    Residual Car Purchase

    Hello All,

    Are there any benefits to purchasing a car using the residual method as opposed to the normal loan type?

    Thanks,

  2. #2
    Site Caretaker Dave A's Avatar
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    It makes it easier for you to drive a car you couldn't really afford otherwise

    Probably easier to justify if you think of it as a rental. Just don't for a moment think that you actually own the car.
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    Diamond Member AndyD's Avatar
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    As Dave said it's effectively leasing the car and purchasing it at the end of the agreement. I would be careful of how much the residual is at the end, it can be far more than the market value of the car at that time which would be a little depressing.
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    Diamond Member wynn's Avatar
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    Look at it this way;
    Under residual lease they buy the car and you pay for it, then they sell you the car and you pay for it. Simple?

    Rather lease a car for the business that way it all comes off tax and you get to use the car for half price.

    Oh and you don't have any maintainance costs.
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