"Guaranteed Residual Value" (GRV) refers to the predetermined or assured value that a leased asset is expected to have at the end of the lease term. This value is agreed upon in the lease contract between the lessor (the owner or provider of the asset) and the lessee (the party leasing the asset).
Key points about Guaranteed Residual Value include:
1. Assurance of Value: The GRV serves as a guarantee provided by the lessor to the lessee regarding the minimum value the asset is expected to have at the end of the lease period.
2. Lease Calculations: GRV is an important factor in determining lease payments. The lessee's payments are often based on the difference between the initial value of the asset and its guaranteed residual value.
truncated value3. Risk Allocation: GRV helps allocate the risk associated with the future value of the asset between the lessor and lessee. If the actual value of the asset at the end of the lease term is lower than the guaranteed residual value, the lessor typically bears the loss.
4. Common in Vehicle Leasing: Guaranteed Residual Value is frequently used in vehicle leasing. It allows for more accurate lease pricing by factoring in the expected value of the vehicle at the end of the lease.
5. Asset Management: For lessors, GRV helps in managing their asset portfolio and forecasting future financial positions.
It's important for both parties to clearly understand and agree upon the terms related to Guaranteed Residual Value as part of the lease agreement to avoid disputes at the end of the lease term.

版权声明：本站内容均来自互联网，仅供演示用，请勿用于商业和其他非法用途。如果侵犯了您的权益请与我们联系QQ:729038198，我们将在24小时内删除。