Fuel Economy and Supply-Demand Trends Help Strengthen Residual Values


Eric Lyman
VP, Editorial and Partner Development

Residual values are seeing a strong forecast from ALG – an increase of 0.5 percentage points (ppts) on average in the 36-month term. Segments with stronger fuel economy are marginally more positive. Demand is raising residuals across segments while industry-level supply is very negative; segment level supply is mostly negative, though a few segments see increases.

Here’s the latest ALG Industry Report – March/April Edition

Compact MPV, Compact and Premium Performance Had Strongest Gains:
Compact SUV up 0.8-ppts, Compact up 0.9-ppts, and Premium Performance increased 1.2-ppts since last edition.

Premium Midsize Utility, Prem. Compact Utility, and Prem. Compact Below Industry Average of 0.5-ppts:
Prem. Midsize Utility at -0.2-ppts, and Prem. Compact Utility and Prem. Compact both at 0.2-ppts.

Used Supply Forecast Rose Significantly Causing –0.5-ppt Impact on Residuals:
Segment supply changes vary from –0.5-ppts for Premium Midsize Utility to 0.4-ppts for Premium Performance.



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