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Automotive glossary

Residual value

Residual value is the estimated value a vehicle will retain at the end of a specified period or contract.

Reviewed 05.10.2026 · Version 2 · Scope: General

How to interpret it

It depends on assumptions about age, use, condition, and the market. A financing arrangement may specify a final amount; its meaning should be checked in the contract and not automatically treated as the market price.

Example

Hypothetical example: an ownership budget projects a sale for €9,000 after four years. That amount is an assumed residual value, not a guaranteed purchase offer.

Why it matters to you

It affects estimated depreciation and the cost of ownership. Showing it helps clarify how much an economic comparison depends on a future resale.

Common points of confusion

An estimated residual value does not guarantee a sale price. A contractual final installment and market value may differ.

Documentary sources

Calculadora del coste de propiedad U.S. Department of Energy · 2026-10-05

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