Values for ex-company light commercial vehicles remain at, or close to record levels, and while it might appear that prices are on a knife edge if vendors follow the golden rules of disposal then windfall conditions will continue for many more months.
Contract hire and leasing companies are potentially risking residual value suicide by, in some cases, writing new business based on current used prices even though cars will not be defleeted until at least 2016, it is claimed.
Contract hire and leasing companies live or die by accurately predicting vehicle sale prices and while a ‘marginal tailing back’ of values from current levels is being predicted if the economy improves, a raft of uncontrollable influences means a precarious balancing act is being pursued.
Traditional fleet service, maintenance and repair (SMR) costs can be forecasted down to the final penny at the benchmark three years/60,000 miles - but a raft of ‘grey areas’ fuelled by numerous factors means contract hire and leasing companies continue to build up contingency funds to meet the cost of the unforeseen.
Longer service intervals and a trend for motor manufacturers to move the requirement for ‘expensive’ parts replacement - such as cambelts - beyond 60,000 miles has contributed to a decade long changes in the breakdown of service maintenance and repair (SMR) costs.