The problem of residual values is one of the hot issues in the international fleet business. The economic crisis has caused a hitherto unseen decrease in residual values throughout the whole of Europe. The result is a loss of millions of Euros along the entire automotive value chain.

During the Fleet Europe Forum Steffen Schick, Head of EurotaxGlass’s hammered home the message about the importance of ensuring correct definitions of residual values. This is important because it enables the fleet business to detect market swings sufficiently early. Schick pointed out how forecasting residual values can be improved using macro-economic factors such as interest rates, car prices and government incentives and technology trends as well as manufacturer-specific factors such as brand strength and competitive pressure.

Schick closed by saying that ‘there is a continued need for setting residual values and there is no alternative to using scientific residual value forecasts as a basis for management decisions.