Monthly car lease payment with a down payment and a residual value.
A lease charges on the difference between the price and the residual value at the end of the term, not on the whole price, so the monthly payment is lower. In exchange the car belongs to the lessor until the last payment, and at the end you buy it, hand it back or refinance.
It is the amount left unpaid at the end of the contract, payable in one lump sum. A higher residual lowers the monthly payment but raises both the total interest and the risk that the car's market value ends up below the buyout figure.
In Latvia it is usually ten to thirty percent of the price, and higher on a used car than a new one. A larger down payment reduces both the monthly payment and the total interest, which usually makes it the best place to put spare cash.
The advert shows only the payment, but a contract fee, comprehensive insurance for the whole term, the vehicle operation tax and registration come on top. These can add fifty to a hundred euro a month and belong in the same calculation as the payment.