What does vehicle residual value mean?

[DeLiam]

Vehicle residual value refers to the remaining use value within the stipulated reasonable service life of a vehicle, which is known as the generalized vehicle residual value. Here is additional information: 1. Influencing factors: The service life of the vehicle—the longer the vehicle has been used, the lower the residual value rate tends to be; the condition of the vehicle—the better the condition, the higher the residual value rate; the nature of vehicle use—generally, the residual value rate of commercial vehicles is lower, while that of private cars is higher. Additionally, factors such as the color of the vehicle, whether all necessary documents are complete, the cost of routine maintenance and repairs, the inventory of similar vehicles in the market, and the price fluctuations of new vehicles of the same brand also play a role. 2. Evaluation methods: There are many methods for estimating vehicle residual value. According to national regulations, there are four methods: the income present value method, the replacement cost method, the current market price method, and the liquidation price method. Among these, the replacement cost method is the most fundamental and the simplest to implement.