Example: Used-Car Guidebook

Assume that you have a 48-month lease that permits 12,000 miles per year, or a total of 48,000 miles, on a 4-door, 4-wheel-drive 2001 Spark sport utility wagon with standard equipment, including air conditioning, plus a CD player. Also assume that the lease agreement has an end-of-term purchase option for a price to be published in a used-car guidebook at the end of the lease. In this example, that price is the trade-in value (shown below) of the vehicle stated in the used-car guidebook, which is based on the permitted lease mileage before adjustment for actual mileage or the actual condition of the vehicle.

Used-car guidebook (published in 2005)

2001 Spark Sport Utility Trade-in Retail
2D Wagon 4WD
$11,025
$14,625
4D Wagon 2WD
10,500
14,025
4D Wagon 4WD
11,300
14,975
Add CD player
150
175
Add custom wheels/covers
125
160
Deduct without air conditioning
500
600

Low-mileage table

Mileage 2003
Model Year		 2002
Model Year

2001
Model Year

 2000
Model Year		 1999
Model Year
35,000 - 40,000
 
+275
+750
+1075
+1200
40,000 - 45,000
 
 
+550
+850
+1025
45,000 - 50,000
 
 
+300
+675
+900
50,000 - 55,000
 
 
 
+500
+775
55,000 - 60,000
 
 
 
+275
+625
60,000 - 65,000
 
 
 
 
+450
65,000 - 70,000
 
 
 
 
+225
70,000 - 75,000
 
 
 
 
 

For the 2001 Spark, the trade-in value in 2005 is $11,300 for the 4-door, 4-wheel-drive model plus $150 for the CD player plus $300 for the low-mileage adjustment, for a total FMV of $11,750. Note that the residual value at lease inception is higher for a 12,000-miles-per-year lease than 15,000-miles-per-year lease.



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