A conservative projection of the market value of a vehicle at the end of a lease. Residual values are provided by major auto manufacturers or independent companies that specialize in auto valuation. A higher residual value will lower the monthly payment. However, the vehicle must be resalable at the residual amount or the lessor will lose money. Conversely, adjusting the residual too low will increase the monthly payment and may make the lease payment unattractive. Adjustments to residual may be made for excess mileage or wear and tear.