February 13th, 2008 at 5:00pm
Listen to this story:
General Motors is studying how to boost residuals values, and you won’t believe whatboosts them more than anything else.
It’s no secret that Toyota and Honda have better residual values than most Big Three products. So GM set out to find ways to boost the residual values of its fleet cars at auctions. And the results are startling.
The single easiest way to boost residual values on used cars is to make sure they have a nice set of aluminum wheels on them. That’s right, a nice set of rims. The next best thing is a sunroof and the third best thing is leather seats.
What GM really found out is that even though they’re selling new cars to fleet customers, they’re better off trying to get fleet customers to equip them the way people want to buy them when they go to the used car market.