ALG on Residual Value Trends, A Tribute to Art Spinella March 5, 2015
Lyman_Eric_ALG_100w


Economic Forces Make for Stable Residual Value Environment

Eric Lyman
Vice President, Industry Insights
ALG

ALG’s macro-economic outlook continues to be positive. Gasoline prices have fallen over 50% from their peak and these windfall savings are a big driver behind the gains. Consumers are finding increased confidence (now at its highest level in 10 years), and economic expansion is expected to continue. Employment growth has been very strong recently in the US. The labor market is expected to improve further this year, with accelerating growth in wages.

Here’s the ALG March-April 2015 US Industry Report

Macro Impact for March/April Compared to Last Edition is Neutral Used Supply:
At industry level, supply forecast rose for this edition, causing a -0.09-ppt impact on residual values.

On Average, Segment-Level Supply Has a -0.09 ppt Impact on Residuals:
Ranging from -0.8 ppts for Fullsize to +0.2 ppts for Premium Subcompacts.

Real Durable Goods Spending Forecast Up, with +0.1 ppt Impact to Residuals:
Gas price declines lowered value of fuel-efficient vehicles, while raising values for inefficient segments.
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Jon LeSage headshot photo


Honoring Art Spinella for His Contributions to the Auto Industry

Jon LeSage
Editor
Used Car Market Reports

My Automotive Digest colleagues and I were very sad to hear about the passing away of Art Spinella. The president of CNW Research, based in Bandon, Oregon, died from congestive heart failure at the age of 68. Spinella has been well known in the auto industry for several years as an analyst tracking consumer car buying decisions and retail auto sales trends through CNW Research and its Retail Automotive Summary newsletter.

Read all about Art Spinella’s influence on automotive market analytics

CNW Research reporting sometimes differs from other auto market analysts. That’s always been one of the reasons we’ve read the reports regularly – the data and analysis is comprehensive and can’t be found anywhere else. It’s also provided in-depth analysis of the growing importance of retail used vehicle sales and other trends shaping the market. CNW Research content has been shared and cited in other industry reports – including Kontos Kommentary and Manheim Used Vehicle Value Index.
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