Hertz could gain over $100 million in fleet economic benefit for every 1% increase in residual value, potentially acting as a significant earnings lever if the trend of rising vehicle resale values continues.
"management estimates every 1% increase in residual value translates to over $100 million in fleet level economic benefit. With April's Mannheim rental car index jumping 8% in just one month, Hertz could be sitting on a hidden earnings lever if this trend continues."