While interest rates are still high, residual values have recently declined by as much as 20%. Learn how fleets can mitigate these effects and ease ownership costs.
The effects of falling and uncertain EV residual values -- with reductions of between 10% and 20% fleets -- are beginning to concern fleets in the U.K.
The discounts had an immediate impact on one of the largest fleet owners of Tesla vehicles, at least on paper.
Tesla models have witnessed some of the industry's greatest downward movements, and the automaker has heaped further pressure on its used values by announcing new car price reductions on its Model 3 and Model Y.
Current sales of electric vehicles are largely driven by incentives, and while incentives help move the metal on the new-vehicle front, they have a negative effect when it comes to residual values.
IRVINE, CA - Kelley Blue Book stated that although values of compacts only increased 0.4% for most of February, during the last week of that month their values jumped 1.3%.
WALTHAM, MA – Due to a strong residual market in 2011, Thermofisher’s Global Sr. Category Leader for Fleet & Indirect Services, Rick Odell, C.P.M., told Automotive Fleet that his group was able to short-cycle 350 leases in 2011, generating a 10- to 20-percent premium over the expected residual values.
SANTA BARBARA, CA – ALG announced its 13th Annual Residual Value Awards, which honor vehicles in specific segments that the company predicts will retain the highest percentage off MSRP after a three-year period.
RBC Bearings saved lease and maintenance expenses by moving to a shorter cycle with a flexible closed-end lease.
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