Residual value calculator
Whether you finance your car or buy your vehicles outright, it’s important to choose a vehicle with an optimum residual value.
As soon as you drive your car off the forecourt, it starts to lose value. But it doesn’t have to be this way. Volkswagens are famous for consistently retaining their value. In fact, our retention rate after three years and/or 36,000km is well over the average. Our cars aren’t just reliable: their superior technology means they withstand the test of time and are always in demand. So choosing Volkswagen means choosing a fleet that could save you money in the long run.
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Wondering why Volkswagens hold their value?
It’s easy to ignore residual value when you’re making a decision about your perfect car. Our simple guide tells you everything you need to know to make the right decision.
When buying a car outright, the residual value refers to how much it might be worth when you sell it. While this may only seem important when purchasing a car, a high residual value is also beneficial when leasing. The higher a vehicle’s residual value, the lower your monthly payments. The leasing company knows that the car will be valuable long after you’ve finished leasing it, so they can afford to give you a better deal. Volkswagen vehicles are particularly good at retaining their value thanks to:
- Technology: Our technology can save you energy and fuel while driving, whilst our advances in safety mean our cars don’t just keep you safe, they help to prevent the car from having an accident at all.
- Engineering: Our range of electric and hybrid vehicles are breaking down the barriers to adopting a green fleet. From improved charge times and mileage per charge, they’re constantly inventing new feats in engineering to make electric and hybrid more accessible.
- Reliability: From the sporty Golf to the dependable Passat, when you drive a Volkswagen you’re in charge of one of the most reliable cars on the road.
We use the same independent party (KWIKcarcost) as most leasing companies, so you can be sure that this is the most reliable indicator of the future value of your vehicle.
The P11D value of your car is the sum of its list price + VAT + delivery charges. It does not include the first registration fee or its annual road tax. Employers must fill out a P11D form to register their ‘pay as you earn’ scheme with the tax office.
We estimate your vehicle’s value for 36 months (three years) in the future, based on an annual mileage of 20,000 miles per annum. If this distance is less or more than your required mileage then your car’s actual future value will vary from the one we predict.
How to use the calculator
Understanding the residual value of your vehicle is important whether you’re a fleet manager, small business owner or are leasing your vehicle.
- Leasing: If you lease a car for three years, its residual value is its worth after those three years. The higher the residual value of your vehicle, the lower your lease payments will become.
- Small business: If you’re a small business buying the car outright, the residual value gives you an indication of the car’s trade-in value after three years.
- Fleet manager: If you’re a fleet manager working on a capital budgeting project, the residual value calculator will help you to estimate how much you’ll be able to sell the vehicle for after the firm has finished using it.