Isuzu Finance eyes higher lease residuals to address truck costs

PALM DESERT, Calif. — Isuzu Finance of America is working to raise residual values on fair market-value leases in January to help customers manage higher truck costs. 

The proposed changes come as customers choose to repair older trucks rather than replace them, Jim DeFrank, executive vice president and chief operating officer for Isuzu Finance, said Oct. 26 during a panel discussion at the ELFA Convention 2026. 

Higher residual assumptions can lower monthly lease payments by reducing the amount of a vehicle’s value customers pay down during the term. 

Isuzu Finance has been tailoring structures for existing customers with strong credit, relying on its knowledge of borrowers and collateral, DeFrank said. 

“We try to customize a little bit and then we’ll standardize it eventually if it’s working,” he said. 

The changes remain under development, with a target of January 2027, as Isuzu customers weigh replacement costs against spending more to maintain aging trucks, Defrank said. 

Planning beyond the sale 

Closer coordination between manufacturers and financing partners can help customers manage equipment costs before their next purchase, Carolyn Amberg, senior director of payment solutions for North America and Latin America markets at computer and printer manufacturer HP, said during the panel. 

Sharing portfolio data allows partners to identify opportunities for upgrades, extensions and replacements based on customers’ budgets and equipment needs, she said. 

HPE Financial Services, the financing arm of enterprise technology provider Hewlett Packard Enterprise (HPE), has worked with HP and HPE on campaigns that let customers secure current equipment pricing while aligning deployment with their replacement schedules, Joshua Marske, business development manager for the Americas at HPEFS, said. 

HPEFS provided $5.5 billion in financing for equipment and related software and services in fiscal 2025, including intercompany activity, according to HPE’s annual report filed Dec. 18, 2025. 

For Caterpillar Financial Services, that coordination extends beyond financing new equipment to supporting rebuilds, said Pasqual Slaughter, vice president for North America. 

Financing terms for rebuilds depend on the asset and its expected remaining life, he said. The broader aim is to maintain customer relationships through changing business needs. 

“The objective is to keep the customer in business, drive the stickiness,” Slaughter said. “How do we keep them coming back?” 

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