Residual Values: A Collaborative Approach
The age-old practice of relying solely on third-party prognosticators for residual value estimates is evolving, as financiers and automakers put their heads together to develop more tailored expectations of lease-end values.
“They’ve changed the way they use the guidebook,” said Rene Abdalah, a vice president at residual value insurance provider RVI, at a recent conference. “They might use more than one guidebook. Some of our clients are getting more creative and doing more analysis themselves.”
Once companies complete their number-crunching, they often call on guidebook analysts for interpretation. “I think they depend on us more for help in their analysis and understanding their analysis,” said Ricky Beggs, managing editor of Black Book.
Even manufacturers have become more amenable to a collaborative approach. “We have been in meetings with OEMs more open to sharing than they ever have before,” said Eric Lyman, director of residual value solutions at ALG. “They want to make us understand where their brand is headed.”
To read the rest of this article, join Auto Finance News VIP. To be become a member, click here: http://autofinews1.wpengine.com/page/get-vip-access
