Does the 2016 Chevy Malibu Offer Superior Residual Value?
As you compare prospective vehicles, you may wonder if a car like the 2016 Chevy Malibu offers residual value that will equate to the monthly payment amount you’re looking for and an ideal end-of-lease purchase amount, or if a competing vehicle, like the 2016 Honda Accord Coupe, offers better residual value.
The Residual Value Equation
Simply put, residual value is the value of your vehicle that will remain once the term of your lease agreement has ended. Residual value is also the amount of money a driver can purchase the vehicle for at the end of their lease, if they choose to.
Residual value significantly affects a consumer’s monthly payment amount when they sign a lease agreement.
Lease payments are determined by the amount of value a vehicle will lose during the lease period. So, for example, if a vehicle’s value is $30,000 at the start of the lease, and it is projected the car will lose $10,000 of its value by the time the lease is over, that $10,000 of lost value is the amount the driver must pay for during the course of the lease. If the lease term is 36 months, the monthly payment is determined through dividing that $10,000 by 36 months, equaling out to $277 per month plus the attendant interest, taxes, and fees.
At the end of the lease term, the $20,000 of value retained by the vehicle is the amount the driver may purchase the vehicle for if he or she decides to keep it.
Residual Value: Malibu vs. Accord Coupe
As you can see, when you’re planning to lease a vehicle, it’s important to find one that will hold its value well.
In comparing the residual values of comparably equipped and priced Malibu and Accord Coupe models, the Accord offers much better value retention than the Malibu, according to data from ALG.
After 36 months, the Accord Coupe model is estimated to retain 53% of its value, while the Malibu is projected to retain only 39% of its value after 36 months.
Following a 60-month lease, the Accord Coupe will retain an estimated 39% of its value, while the Malibu is anticipated to retain just 27% of its value after 60 months.
Try It Out
Drivers can explore the various features and assets of the 2016 Honda Accord Coupe and learn more about leasing this outstanding vehicle at any Tri-State Honda Dealers location.
Visit or contact one of our affiliated dealerships today to get more information and take a test drive.