ALG, a subsidiary of DealerTrack, has found through its proprietary modeling and research that high rental fleet penetration levels not only have had a negative impact on residual values, but on perceived quality and brand image as well.
According to ALG’s September/October Industry Report, “Fleet sales have served many functions over time; some manufacturers used rental fleet sales to help gain exposure for a new product by offering limited vehicles to reputable fleet companies, while others used rental fleet as a channel to off-load excess inventory when actual demand was below production levels.” ALG maintains that the generalized rule of 10 percent and 5 percent rental fleet penetration for the mainstream and luxury brands remains the key gauge to avoid adverse impact on residual value.
In addition to information on this topic, the attached Industry Report covers a number of topics including segment trends for the Entry Premium CUV market segment, an economic outlook and its impact on the overall vehicle market, as well as an outlook for residual values for the 2012 Nissan Versa Sedan, 2012 Cadillac SRX, 2012 Land Rover Range Rover Evoque and 2012 Audi A6.
Click here to download the full ALG’s September/October Industry Report.