What is the remaining purchase price? | AMEXcited Guide

What is the residual purchase price on a leasing contract? How is it calculated? And what is a residual purchase price mortgage for real estate? You can find out here.

Editorial AMEXcited Guide

Editorial AMEXcited Guide

the essentials in brief

Leasing with a purchase option: This is an interesting variant for anyone who, for example, wants to test out a new car model for a while and only then decide whether the purchase is worthwhile. The price you have to pay when making a purchase is the remaining purchase price. We explain how it is calculated and what terms such as “residual purchase mortgage” mean.

  1. What does “residual purchase price” mean?
  2. How is the residual purchase price calculated for leasing?
  3. The remaining purchase price for real estate
  4. With the remaining purchase price to your own car
  5. FAQ: Frequently asked questions and answers

What does “residual purchase price” mean?

The term residual purchase price is most commonly used in connection with the leasing of an item, such as a copier or vehicle. However, it is also used in real estate (see below).

  • In the context of leasing, it describes the amount of money that the customer would have to pay to the lessor at the end of the contract period, so that the leased item becomes their property.
  • In principle, the remaining purchase price decreases with each monthly leasing payment.
  • The remaining purchase price can be settled with a one-time payment or finance with a loan.

Quick-Info: Leasing von Autos

55 percent of the people who leased vehicles in Germany in 2022 were private individuals. A typical leasing contract ran for 36 months, had monthly average rates of 299 euros (56 euros more than in the previous year) and included 10,000 kilometers.
Source: leasing market

How is the residual purchase price calculated for leasing?

The amount of the remaining purchase price and the modalities of the purchase result from the details of the leasing contract. The following points play a particularly important role:

  • So that you can purchase the leased item, for example a car, The leasing contract must contain a purchase option.
  • The starting point for the remaining purchase price the value of the leased object at the beginning of the lease. This value does not have to correspond to the actual market value: it depends on what is agreed in the contract.
  • In leasing transactions it is common make a higher down payment immediately after conclusion of the contract. This reduces the remaining purchase price.
  • The monthly leasing rates already paid also reduce the remaining purchase price.
  • Calculating the is a bit trickier Depreciation through use of the item, such as a vehicle. In some leasing contracts, this is already taken into account when the contract is concluded. Depending on the condition of the car and the kilometers driven, compensation (additional payment or reimbursement) takes place at the end of the contract period. In some contracts, however, the depreciation is calculated in full at the end of the contract.

In a nutshell: The remaining purchase price of a leased item is the initial value at the time the contract is concluded minus the down payment, leasing installments and loss of value through use.

The remaining purchase price for real estate

The word “residual purchase price” is also used in other contexts, especially when purchasing real estate where payment in installments or hire purchase has been agreed.

  • Residual purchase price for hire purchase: If you buy a house by hire purchase, you enter into a rental agreement and a purchase agreement. You first repay the agreed purchase price through rental payments, some of which are offset against this: you receive a real estate loan from the other party. After the agreed time, you pay the remaining amount (the remaining purchase price) so that the property becomes your property.
  • Residual purchase price mortgage: Does the sales contract stipulate that you first pay a down payment for a property and only pay the balance later? Then you can agree with the contractual partner that you take out a mortgage on the house to secure the remaining purchase price – i.e. the outstanding amount: the residual purchase price mortgage.
  • Remaining purchase price payment: This is simply the payment of the amount of money that corresponds to the residual purchase price of an object (e.g. a property after deducting the down payment). Depending on the contract, a one-off or installment payment is possible.

*Detailed information on services, in particular on exclusions, can be found in the respective conditions of the card product.

With the remaining purchase price to your own car

The remaining purchase price is usually the sum that the lessee has to pay after the end of the contract period in order to purchase the leased item. Depending on the contract, this sum can be paid as a one-time payment or in installments, if necessary with the help of a loan. This is particularly practical with cars, for example: Thanks to leasing with a purchase option, you can test out a new model first and transfer ownership later if you wish.

FAQ: Frequently asked questions and answers

What is the remaining purchase price?

In a car leasing contract, the remaining purchase price describes the amount of money that the lessee must pay at the end of the contract period so that the vehicle can become their property.

How is the remaining purchase price calculated?

The remaining purchase price results from the contractually agreed value of the vehicle at the beginning of the leasing, from which the down payment made, the leasing installments made and the depreciation due to the use of the vehicle are deducted.

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