The Valuation

The Valuation

All The Valuation articles from Car Buying Explained.

Latest Articles

Valuation 6 min read

How Lease Disposition Fees Are Calculated

Lease disposition fees are fixed by the lessor at contract signing and reflect the cost of remarketing a returned veh...

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Valuation 6 min read

Financing Versus Paying Cash, Compared

Financing and paying cash for a car move money differently, produce different paperwork, and carry distinct costs tha...

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Valuation 6 min read

Buying a Car As-Is: What It Means for Value

Buying a car as-is transfers all mechanical and financial risk to the buyer at the moment of sale, with direct conseq...

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Valuation 6 min read

What Total Cost of Ownership Includes

Total cost of ownership spans purchase price, financing charges, depreciation, insurance, fuel, maintenance, and disp...

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Valuation 6 min read

How Mileage Changes Resale Value

Mileage depresses resale value along a non-linear curve — the first 30,000 miles cost more per mile than later miles,...

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Valuation 6 min read

What Residual Value Means on a Lease

Residual value on a lease is the predetermined dollar figure a vehicle is expected to be worth at lease-end — and it ...

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Valuation 6 min read

How Residual Value Is Set on a Lease

Residual value on a lease is a forecast of a vehicle's worth at lease-end, set by the finance arm before the contract...

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Valuation 6 min read

How a Depreciation Curve Is Built

A vehicle's depreciation curve is modeled from resale transaction data and varies by model, not a single fixed percentage per year.

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Valuation 6 min read

Leasing Versus Buying, the Real Math

Leasing and buying a vehicle differ in what is actually being paid for — depreciation and use, versus the full asset.

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