Residual value is the estimated projected market value of the vehicle at the end of its lease.
A vehicle's residual value is established at lease inception, to ensure that the user is charged an appropriate fee.
Residual values vary according to the particular make and model of a vehicle. The higher the residual value assigned to a particular vehicle, then the cheaper that vehicle is to lease.
VicFleet sets residual values based on industry forecasts and direct knowledge of trends in second-hand vehicle markets. A conservative approach is adopted to reduce the financial risk of significant losses on sale of vehicles.