It's crucial to establish the right MSRP and that means setting a price that is as close as possible to the actual transaction prices commanded by a vehicle.

In Revenue Modeling and GLAD, we are developing a very sophisticated set of tools that allow us to analyze the whole lifecycle of the products. We collect as much data as possible, calibrate the data, and then feed all the significant variables impacting residual values into our models to get a complete picture of and insights about resale values.

The key to improving residual values is to realize that residual values are fundamentally impacted by decisions made throughout the product lifecycle, even though it is measured at remarketing time. We see increased residual values when we incorporate residual improvement strategies early into the decision-making process.