Results 1 to 4 of 4

Thread: Residual Car Purchase

  1. #1
    Gold Member Singhms's Avatar
    Join Date
    Oct 2008
    Location
    Pretoria (National)
    Posts
    900
    Thanks
    133
    Thanked 49 Times in 45 Posts

    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
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    18,917
    Thanks
    2,779
    Thanked 2,210 Times in 1,849 Posts
    Blog Entries
    12
    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.
    Seeing opportunity changes nothing. Seizing opportunity and running with it changes lives.

  3. #3
    Diamond Member AndyD's Avatar
    Join Date
    Jan 2010
    Location
    Cape Town
    Posts
    3,256
    Thanks
    404
    Thanked 627 Times in 512 Posts
    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.
    _______________________________________________
    I am special and so is Vanash.
    _______________________________________________

  4. #4
    Diamond Member wynn's Avatar
    Join Date
    Oct 2006
    Location
    east london
    Posts
    2,795
    Thanks
    485
    Thanked 554 Times in 458 Posts
    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.
    "Nobody who has succeeded has not failed along the way"
    Arianna Huffington

    Read the first 50 pages of my book "Didymus" for free at http://www.smashwords.com/books/view/332256

Similar Threads

  1. [Question] Offer to Purchase Document
    By Singhms in forum General Business Forum
    Replies: 25
    Last Post: 13-Oct-10, 06:48 PM
  2. [Article] Purchase method availability
    By Fortuner in forum General Business Forum
    Replies: 2
    Last Post: 21-Aug-10, 11:45 AM
  3. [Article] Media statement on reports on purchase of official vehicle for use by the deputy mini
    By BBBEE_CompSpec in forum South African Politics Forum
    Replies: 2
    Last Post: 14-Dec-09, 03:31 PM
  4. PURCHASE OF A TRUCK AT THE AUCTION
    By LazarusR in forum General Business Forum
    Replies: 2
    Last Post: 03-Aug-09, 07:43 PM
  5. Property purchase and surety rights
    By duncan drennan in forum General Business Forum
    Replies: 7
    Last Post: 05-Sep-07, 11:21 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •