Segment shifts and tech advancements raise residual value risk

For today's automotive lenders, the environment of uncertainty and change is unprecedented, writes Megan Lampinen

Many new car buyers rely on financing contracts to fund vehicle purchases, particularly in North America and Europe. For vehicle manufacturers and their captive finance units, it has provided a lucrative revenue stream over the years. However, changes in consumer preferences and technological advancements could turn that on its head….

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