R - Residual/retained values

Residual/retained values - This is how much a car is worth after a given period of time on the road. A residual or retained value of 30% over three years means that 70% of the original value has disappeared - good news for used car buyers.

This loss in value is almost always the single biggest expense in running a car. Premium brands or those in short supply tend to have stronger residual values. (See Depreciation).

For whatcar.com's guide to contract hire and leasing click here