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.
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.