Residualize PPM- Product | Voters

Residualize PPM- Product

Farhan Ghanty

Many Manufacturers including Mercedes allow residual value on maintenance or added accessories and this is definitely a must have,

Shelby Parker

Thanks for posting this, Farhan Ghanty — totally hear you, and agreed this can be a must-have for certain OEM programs (like Mercedes). Just so we capture this the right way: when you say “Residualize PPM-Product,” which items are you looking to residualize (prepaid maintenance, service contracts, accessories, etc.), and are there any that should

never

be residualized? Also, should this apply only on lease quotes, or on finance/cash deals as well? And for how the residual gets set, are you expecting to enter a fixed $ amount, use a % of the item price, or have it driven by manufacturer/lender program rules?

Farhan Ghanty

Shelby Parker, PPM and other limited accessories are allowed and required to be residualized by Mercedes.

For example a customer adding a rear spoiler on the vehicle will be residualized as it will be returned on the vehicle at the end and PPM are also residualized by Mercedes in order to offer more competitive payment to customer. This is common practice and almost every MB dealer can confirm. It is must have option on leases only. The value added is residualized the same as the residual % set up by the manufacturer.

Lisa Clemons

I agree! Having a box to choose to residualize a product is an important need.

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