Eric Lyman
Director of Residual Value Solutions
ALG
ALG expects residual values to decline 0.7% during the July/August time period covered in its Industry Report. Gasoline prices were down with -0.1 percentage point impact in segments with strong fuel economy and +0.1-ppt impact in segments with poor fuel economy. The overall macro impact for July/August compared to May/June is neutral. July/August is less positive than that edition a year ago, when a market adjustment lead to a 1-ppt. bump in residuals.
Click here to read the ALG July/August Industry Report
On Average, Segment-Level Supply Has -0.1-ppt Impact on Residuals:
At industry level, ALG’s supply forecast has increased, leading to 0.2-ppt drop in residuals.
Segment-level Supply Changes Vary, from -0.2 ppts for Compact, Midsize, and Fullsize Pickups:
To 0 ppts for Premium Compact Utility, Microcars, and Subcompact Utility.
In Edition-over-Edition Changes in Percentage Points (on 36 month leases):
Largest actual changes seen in Subcompact (-1.3%), Midsize (-1.3%), and Compact (-1.2%)
