SPORT utilities have suffered the most from a decline in the residual values of leased vehicles.
Henderson said the correction in leasing wouldnt last nearly as long as GMACs mortgage problems because GM had already curtailed its leasing exposure and adjusted the residual values of leased vehicles still on the road to reflect current used-car prices.
In a preliminary earnings release, Bayerische Motor Werke said that it had suffered from write-downs related to the reduced value of leased cars and bad debts.
According to ALG, a company that estimates the future value of leased vehicles, the Odyssey is likely to retain more value after three years than any other minivan.
Automotive Lease Guide, or A.L.G., which predicts residual values -- the projected resale value of leased cars -- has already told lenders to expect sport utilities' residuals to be lower than the average for all vehicles in the coming year.
BMW said in a preliminary statement that it had suffered from write-downs related to the reduced value of leased cars and bad debts in addition to severance packages for employees.
Thus, the optimal value of leased time for SU at each fading state can be obtained via solving this equation.
Via solving the Eq. (46), we can get the optimal value of leased time for SU at each fading state.
For debt as a percentage of capital we include both long-term debt and the capitalized value of leases.
In addition, although inflation can erode the value of future lease payments, Carey's leases generally have rent increases indexed the Consumer Price Index or another inflation index, depending on the jurisdiction where the property is located.
