2017 Q2 White Paper

J.D. Power Valuation Services

(formerly NADA Used Car Guide)

VALUE DISCOVERY: HOW RENTAL FLEET SALES AFFECT RESIDUAL VALUES



J.D. Power Valuation Services
(formerly NADA Used Car Guide)
 
VALUE DISCOVERY: HOW RENTAL FLEET SALES AFFECT RESIDUAL VALUES

Every day a significant portion of the vehicles sold in the United States do not pull into a driveway, but instead they pull onto rental lots to carry travelers to the beach or to a business meeting. Each year roughly 1.5 to 2 million new vehicles are sold to rental fleet companies, which amounts to 10% to 13% of all sales. While an important channel for new vehicle sales, rental fleet activity also carries significant implications for used vehicle prices.

This white paper explores the brand characteristics that drive auto purchase behavior and their impact on used vehicle prices. Understanding these characteristics is critical for building intrinsic vehicle value and preserving revenue potential in an increasingly competitive market.

Topics Include:

  • Used vehicle supply return distributions
  • Statistical impact of rental fleet penetration on used prices/residual values
  • Brand value and rental fleet penetration relationships
  • Brand reputation avoidance and rental fleet activity

J.D. Power Valuation Services 
(formerly NADA Used Car Guide)

VALUE DISCOVERY:  HOW RENTAL FLEET SALES AFFECT RESIDUAL VALUES

*Required