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.