Automotive Lease Guide (ALG) has announced the launch of ALG Fleet Residuals, a residual projection model for vehicles serviced in commercial and daily rental car fleets.
ALG Fleet Residuals are based on historical trends of fleet vehicle auction resale performance and specific mileage adjustments for nearly new vehicles' depreciation trends, with a focus on seasonality patterns. The ALG model incorporates the impact of incentives (fleet and consumer), vehicle days' supply and used-vehicle prices for one- and two-year-old models.
New-vehicle fleet residual values are provided on a bimonthly basis in dollar or percentage format, and fleet managers can select terms between three and 48 months. Residuals are based on an annual mileage of 21,000; however, the basis can be modified from 18,000 to 30,000 miles per year.
ALG says future plans include the development of online tools that allow fleet managers to upload their remarketing results, evaluate the value of the residuals they have on their books and compare their remarketing efforts to national average auction prices.