what is considered a good residual value 
residual value is often used in the context of leases for cars the residual value is the value of the car at the end of the lease term a good residual value is 55 65 of the manufacturer s suggested retail price msrp 1for other assets companies aim to have a residual value as high as possible this means that not only do they get to utilize the asset over its useful life they also get to recover funds for the asset when they are done using it the bottom lineresidual value is one of the most important aspects of calculating the terms of a lease it refers to the future value of a good typically the future date is when the lease ends when used in the context of a car lease residual value is calculated using a number of different factors such as market value seasonality product lifecycle and consumer preferences over time in accounting residual value refers to the remaining value of an asset after it has been fully depreciated 