Restwaarde (residual value) literally means the value that remains. In the car world the word is used in two ways:
- After a period of use: what a car is still worth after, say, four years or at the end of a lease contract, often expressed as a percentage of the catalogue price (catalogusprijs). Lease companies base their monthly rates on an expected residual value: the higher it is, the lower your monthly payment.
- After damage: the value of the wreck after a total loss. If you keep the wreck, the insurer usually deducts the restwaarde from the payout.
Why it matters when buying or selling
A strong residual value means you lose less to depreciation, which is often one of the biggest costs of owning a car. Popular, economical models with a good reputation usually hold their value better than rare versions or models with known problems. So when buying, look not only at the purchase price but also at what the car will still fetch in a few years. Work out the difference with our car cost calculator and track your current car's value with the valuation tool.