Residual values are often determined in-house by the largest manufacturers Others will turn to outside parties, such as Automotive Lease Guide (on the Internet) for help. Where does the money come from? The money to pay the manufacturer is often a bank, credit union, pension plan or automobile manufacturer's leasing or lending subsidiary. It agrees to provide funds to pay the dealer the selling price of the auto. It is often called the money source The Money source must then find someone to determine a residual value for every auto it proposes to buy from a manufacturer. If the market is depressed at the end of a lease and theresidual value is higher than the used car value, then huge losses result to the Money source. This is not a business for the squeamish. Who are typical Money sources? (not necessarily current)
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