Residual values are considered of major importance for an automotive product/brand in various aspects. They are believed to have a major influence on attributes such as: new car sales, pricing options, buyback risk, and image perception. The presented paper refers to a work in progress model developed for the analysis of residual values in the automotive industry. It is designed to analyze how an automotive company can support and take advantage of residual values. Among others, the following questions are addressed: -What are leverages/policies that effect residual values? -Which leverages/policies are particularly effective/sensitive? -What effects/consequences regarding the new car business are to expect by changes in residual values? Although the model is designed and developed for practical use in the automotive industry and can not be revealed in detail, it provides important aspects that are worthy of discussion with experts in the field of System Dynamics. It represents a new approach to the subject of residual values and connects to previous work such as Sterman (2002). The developed model realistically reproduces the course of residual values in relation to specified market cycles and given exogenous factors. It has proven valuable for questions regarding effective leverages and policies to residual values.

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Date created

• 2005 July 17-2005 July 21

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• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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cc5bb0ac12a5b68b26b1583548898dae

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System Dynamic Society Records

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• This collection is part of the University Archives