Automotive Lease Guide Launches Commercial Fleet Residuals

SEE ALSO: Total Cost of Ownership Guide

SANTA BARBARA, Calif., Sept. 13 -- Automotive Lease Guide (ALG) today announced the launch of ALG Fleet Residuals, a residual projection model for vehicles serviced in commercial and daily rental car fleets.

"Accurate projections of vehicle depreciation are an important aspect of maximizing fleet profitability," said John Blair, CEO of ALG. "ALG Fleet Residuals enable fleet professionals to predict vehicle depreciation, which in turn helps fleet managers learn lifecycle and seasonality trends and make more educated purchasing decisions."

ALG Fleet Residuals are based on historical trends of fleet vehicle auction resale performance and specific mileage adjustments for nearly new vehicles' depreciation trends, with a focus on seasonality patterns. The ALG model incorporates the impact of incentives (fleet and consumer), vehicle days' supply, and used-vehicle prices for one- and two-year-old models. New- vehicle fleet residual values are provided on a bimonthly basis in dollar or percentage format, and fleet managers can select terms between three and 48 months. Residuals are based on an annual mileage of 21,000; however, the basis can be modified from 18,000 to 30,000 miles/year.

The guides are updated every two months and are available at a cost of $200 per year in three formats: online, electronic data, or hard copy.

"We are excited to offer a product specifically for the commercial market that targets vehicles with higher mileage and shorter terms for daily rental (under 24 months)," said Jonathan Banks, Senior Director of ALG Consulting. "In the future, we plan to continue to support this market with online tools that allow fleet managers to upload their remarketing results, evaluate the value of the residuals they have on their books, and compare their remarketing efforts to national average auction prices."

Jonathan Banks will be presenting at the Automotive Fleet and Leasing Association (AFLA) in Rancho Mirage, CA, on September 14, 2006, and at the Fleet Industry Symposium in Atlanta, GA, on September 20, 2006.

About ALG (www.alg.com)

Automotive Lease Guide (ALG) is a leading provider of data and consulting services to the automotive industry. ALG publishes the "Automotive Lease Guide" -- the standard for Residual Value projections in North America, and has been forecasting automotive residual values for over 36 years in both the U.S. and Canadian markets. ALG is a company of DealerTrack Holdings, Inc. .