ALG, an industry benchmark for residual values, has just released estimates for July/August and is forecasting a rise in residual values for the entire 2011 CTS range.
After 36 months, ALG expects the 2011 CTS sedan to hold 55 percent of its original value, 9 percent above the 2010 model. The residual value of the 2011 CTS Sport Wagon is also predicted to be 9 percent higher than 2010 levels, with the 2011 model holding 54 percent of its original value. The CTS Coupe is projected to have the highest of the three models in the CTS portfolio, retaining 59 percent of its original value.
“Competitive products, innovative styling and a value driven pricing strategy are contributing to a resurgence of the Cadillac brand,” said Matt Traylen, ALG chief economist and client partner. “The introduction of the Coupe broadens the potential CTS customer base and elevates the Cadillac brand as a whole with emotional appeal, dynamic performance and enthusiast credibility.”
According to ALG, the higher projections are a result of lower incentives, tighter controls on inventory, and an emphasis on design – attributes that are especially present in the CTS Coupe.