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Land Rover, Toyota Take Top Honors for Residual Value

ALG releases list of top 26 vehicles that lose the least.

by on Nov.17, 2014

Land Rover with its Range Rover Sport took the top spot in ALG's Residual Value Awards for Premium brands this year.

With new vehicles sales continuing to steam roll through the year, finding reasons to purchase one type over another can be a difficult task. For some, which brand will lose the least money may sway the final choice. If that’s the final piece to the purchase puzzle, then it would appear Toyota and Land Rover are the brands to buy.

ALG announced the two were the winners of its 15th annual Residual Value Awards (RVA), for Premium Brand and Mainstream Brand, respectively.

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In addition to the brands, the company also honors vehicles in 26 segments that are forecast to retain the highest percentage of their Manufacturer’s Suggested Retail Price after a three-year period. (more…)

As Sales Slow, Automakers Could be Heading for Incentives War

Good news for consumers could be a disaster for industry’s bottom line.

by on Feb.12, 2014

GM's move to offer more than $7,000 in incentives on its 2014 Silverado has made investors nervous about a possible incentive war.

When General Motors announced it would offer more than $7,000 in discounts on some of its big Silverado pickups the news sent many shoppers rushing to showrooms – but it also sent shivers racing down the spines of automotive investors increasingly worried that slowing sales may trigger the sort of incentive wars that trashed industry profits during the years leading up to the recent recession.

All the ingredients are there for a classic price war, automotive analysts warn. January auto sales took a sharp dip that may have been impacted by more than just the cold weather gripping the nation. In turn, there are now a growing number of vehicles piling up on dealer lots across the country, a situation that may force manufacturers to sharply increase current rebates and other incentives.

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“Rising inventory levels combined with several more waves of bad weather will result in a short-term spike in incentives,” said Eric Lyman, vice president of Editorial and Consulting for ALG, formerly known as the Automotive Leasing Guide. “The danger is that this could be the beginning of an escalating arms race for market share.” (more…)

Subaru, Lexus Tops at Retaining Residual Value

Japanese lead the pack though Audi also comes on strong.

by on Nov.16, 2011

The 2012 Subaru Legacy tops the list among midsize models when it comes to anticipated residual value.

Japanese brands, though facing increased competition, continue to be best at holding onto their residual – or trade-in – values, according to a new study, with Subaru topping the list among mainstream manufacturers while Lexus led the line among luxury brands.

Japanese makers topped 10 of the 19 individual vehicle segments in the 13th Annual Residual Value Awards presented by ALG, long known as the Automotive Leasing Guide.  But Audi, which took the lead in three categories, had more individual segment wins than any other manufacturer.

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The study is significant in that it suggests which automotive marques will do the best job of maintaining value when it’s time to trade in or to return a leased vehicle.

“Residual value is a great indicator of brand strength which in turn contributes to greater sales and profitability,” said Raj Sundaram for ALG. “We have seen a strong focus this year on producing high-quality products with great pricing and packaging delivering real value for vehicle buyers.”

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TrueCar Acquiring Industry Bible ALG

Deal another move to make new web service an industry powerhouse.

by on Aug.22, 2011

TrueCar is acquiring ALG for $83 million.

Internet start-up TrueCar.com will invest $83 million to acquire ALG, a data service that is the gold standard for the automotive industry when it comes to establishing such things as what a car is expected to be worth at trade-in or when its lease expires.

The acquisition of what was originally known as the Automotive Lease Guide is expected to significantly enhance the capabilities and credibility of TrueCar, an upstart website and service that has challenged the traditional online method of both providing consumers with automotive pricing and helping dealers and manufacturers connect with buyers in the final stage of picking a new vehicle.

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“We’re committed, first and foremost, to transparency when it comes to accurate market data,” said TrueCar CEO and founder Scott Painter, and he expects that the extensive research capabilities of ALG will continue to improve TrueCar’s own services.

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Leasing Making a Big Comeback

May soon account for 43% of luxury market again.

by on Mar.04, 2011

Good news for Land Rover as it launches - and leases - the new Range Rover Evoque.

In the “bubble years,” prior to the economic meltdown, leasing had become the option of choice for millions of American motorists, accounting for a majority of the business for some luxury brands.  After all but vanishing during the downturn, leasing is now poised to make a major comeback, suggests the Automotive Leasing Guide.

Also known as ALG, and a principle benchmark for residual values and depreciation data, the publication predicts a significant resurgence in the automobile leasing market that will continue right on through 2015.

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The luxury segment will lead the way with lease penetration rates rising to nearly 43% by 2012, while lease penetration in the mainstream market will increase to 17.5% over the next two years, according to the new estimates prepared by ALG.

Numerous brands are expected to capitalize on this leasing resurgence, based on the ALG 2011 March/April edition and current high residual values forecasts, which allows them to offer highly competitive monthly lease payments.

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