Mobile residual values

Why residual values matter and how they are calculated?

Dan Hakkak, Senior Asset Manager for Lombard Technology Services, explains how Lombard works with mobile technology in setting residual values.

You can also read the audio description for this video below.

How has the development of mobile technology affected the Lombard’s view on residual values?

Mobile technology has developed rapidly over the last few years. With the introduction of Net Books and slate PC's, mobile technology is becoming cheaper, while the necessity to ‘remain connected’ is becoming more important. Manufacturers are now increasing battery life by lowering the processor frequency allowing customers like Grant Thornton, who have a large laptop estate, to equip their staff to work from own customers’ locations and provide a flexible service.

As the technology has become more available, it has become cheaper. The residual investment has remained constant as a percentage and in some cases has actually increased. Lombard has a dedicated Asset Management function that monitors the secondary market mobile sales in the UK and Abroad, particularly in overseas markets where used mobile devices still have a place and therefore keeping residual prices at a healthy level for our customers.

In addition the major PC vendors have embrassed the refurbished PC market, lending credibility to the entire secondary market.