Happycoop
Well-Known Member
- First Name
- Coop
- Joined
- Jan 23, 2019
- Threads
- 7
- Messages
- 120
- Reaction score
- 108
- Location
- Blue Ridge Mountains
- Vehicle(s)
- 2021 Gladiator Mojave
This is not accurate; the residual value can, and often does, drop throughout the year, regardless of whether it is the newest model year or not. As the vehicle's estimated value changes in the market (which happens throughout the year), the RV will adjust to reflect those changes. Long story short, the RV is a dynamic number, but not one that the dealership can change in terms of trying to add profit. You are, however, correct that many dealers will try to pad profit by using an inflated money factor.Correct. Throughout the year while it is the newest model year, the residual won’t change. As soon as the next model year comes out, the previous model year decreases in RV. My main point was dealers cannot change the residual value of a vehicle like they can inflate the money factor.
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