Steve's Blog

Credit Crunch hits Residuals

In the last few days we have seen writedowns of hundreds of millions of Euros by BMW
and Daimler
related to their exposure to residual values of vehicles which they leased in the US.  They will not be the last to have to recognise that the value of the vehicles that they leased in the last couple years now have a lower value when it comes to resale than originally assumed .  This was one of the issues which we considered within the IndeGo concept, as the business was based entirely on leasing, rather than selling vehicles. MORE