Fleet News

Residual wrangle: Vauxhall hits back

VAUXHALL has hit back at residual value projections which place the new Mondeo well ahead of the Vectra and Peugeot 406 in the resale stakes.

The latest edition of CAP Monitor puts the Mondeo 1.6 LX second only to the Renault Laguna 1.8 RT in the upper medium sector with a residual value of 39% after three years/60,000 miles. The 406 1.8 LX and Vectra 1.6 LS however, languish at 35% of their purchase price after the same period - nevertheless it is an uplift of around £700 over the old 405 and Cavalier.

Vauxhall fleet director Mike Bonner said that compared with the residual values currently being set by contract hire companies, CAP Monitor was wide of the mark by around £300. CAP chief economist Mark Cowling defended Monitor's view but stressed that the novelty premium currently enjoyed by the Mondeo would be fairly short-lived.

VAUXHALL'S new 16 valve 1.4 Astra estate is among the front-runners in the lower medium estate sector, according to CAP predictions. With a residual value of 37% of its price new after three years/60,000 miles, the Astra is second only to the VW Golf 1.8 CL on 39%. The equivalent Citroen ZX and Ford Escort 1.4 estates are predicted to hold 36% and 34% of their values respectively.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee