ALG: Residual Values Were Down Slightly Less than Expected


Eric Lyman
VP, Edi­to­r­i­al and Con­sult­ing

ALG’s September/October report saw leas­ing resid­ual val­ues declin­ing 1.6 per­cent­age points (ppt) below the July/August report. That was low­er than the expect­ed 1.7-ppt decline. On the macro-eco­nom­ic front, the real durable goods spend­ing fore­cast is up, with a +0.2-ppt impact on resid­ual val­ues; over­all macro impact is up +0.1-ppts from the pre­vi­ous edi­tion. Gaso­line prices were near­ly unchanged, which meant no vehi­cles had sig­nif­i­cant resid­ual changes relat­ing to gas prices.

Here’s the lat­est ALG Indus­try Report

Incen­tive Spend­ing Was Up $44 Over Pre­vi­ous ALG Edi­tion:
Rental fleet pen­e­tra­tion was 10.9%, had zero per­cent impact on 36-month resid­ual.

Used Vehi­cle Sup­ply Fore­cast Rose for this Edi­tion:
That caused a –0.1-ppt impact on resid­u­als.

Seg­ment Sup­ply Had a –0.05-ppt Impact on Resid­ual Val­ues:
Seg­ment sup­ply changes var­ied, rang­ing from -0.2 ppts for Pre­mi­um Sport, Pre­mi­um Exec­u­tive, and Mid­size Com­mer­cial to +0.05 ppts for Pre­mi­um Full­size Util­i­ty



    Leave a Reply

    Your email address will not be published. Required field are marked *.