We talk to Santo Amoddio, Managing Director at Glass's Information Services Australia, about the future of automotive residual values and what impacts them. Santo discusses how trends like electric vehicles, autonomous driving and car-sharing programs will shape the automotive industry and residual values in the coming years. He explains how residual values directly impact new and used car sales by influencing the total cost of ownership and payments for consumers. Strong residual values can support new car sales by lowering overall ownership costs. Santo goes into the details of how residual values are determined based on a variety of factors like the overall supply and demand of vehicles, the popularity and desirability of makes and models, current economic conditions, and pricing actions taken by automakers. He notes that the decisions manufacturers make around production volumes, options and trim levels, incentives, and vehicle redesigns can positively or negatively impact the residual values of their models. There are several actions automakers can take to improve the residual values of their vehicles according to Santo. These include producing vehicles that align with current consumer preferences, keeping incentives and discounts in check, and effectively managing the timing of new model releases. By taking a strategic, data-driven approach to these areas, manufacturers can build desirability for their brands and support stronger residual values over the long run. Overall, this discussion with Santo provides valuable insights into the nuances behind automotive residual values and how various industry factors and players can shape them. Strong residual values remain crucial for the success and profitability of automakers and their dealer networks. Careful management of factors within their control can help maximize residual values and gain a competitive advantage.