Consumer sales will be boosted by Navigator, Nautilus and Aviator

We have bad news for you if your favorite rental car is a Lincoln. According to Automotive News, the domestic luxury automaker is reducing its sales to rental agencies like Avis and Hertz in order to increase residual values. In the near future, you may need to opt for a Cadillac. Lincoln will still sell to commercial businesses like airport and hotel livery services.

“Those are deliberate efforts to really concentrate on residual values as the new products come out,” Robert Parker (Lincoln’s director marketing, sales, and service), told Automotive News. “Those cars are returned in six to twelve months. This is a problem for our residual values as that’s when all depreciation takes place. They should stay out longer to get the best.

The company’s total sales for 2017 were nine percent. Daily rental sales fell 27 percent during the first quarter of 2017. Only two percent of total sales were made by commercial fleet businesses.

Parker stated that Fleet has not been an integral part of his business. It’s not insignificant.

The company has been hurt by the reduction in rental sales. The overall Lincoln sales dropped 2.1 percent in March, with sales falling 17 percent over the first three months. Automotive News shows that Lincoln’s average transaction cost has increased by $6,200 despite sales falling.

Lincoln’s strong SUV lineup will be a big help. The Navigator has been selling well, with retail sales increasing by 101.6 percent in March. As it reduces its rental sales, the addition of the refreshed and the Aviator in 2019 will be a boon.

While you might not be able rent a Lincoln, it could still be worth the extra money in your driveway.