ALG Cuts Residual Values for Large Trucks, SUVs

Automotive News - July 19, 2011

Anticipating slightly higher fuel prices in the future, ALG, Inc. is cutting residual values for less fuel-efficient vehicles such as large SUVs and pickups. ALG’s Residual Value Guide is widely used for setting residual values. Lower residuals could result in making leasing less attractive for large trucks. It could also mean lease customers have to finance a bigger amount or auto lenders have to spend that much more on incentives to keep monthly payments low. The effect on purchase customers could be lower resale values. ALG predicts the cost of gasoline will be about $4 per gallon three years from now.