Fleet News

Daewoo on defensive after attack on residuals

DAEWOO has defended its used car marketing programme after new speculation about resale values. Weeks after predictions that Daewoo residuals would go into freefall, Glass's Guide has marked its prices down by up to 10%.

The downgrading cuts as much as £900 on a year-old Espero, and there are predictions of a larger fall, and another significant reduction in the guide prices the following month. Rival guide CAP Black Book says that until used Daewoos come onto the market in numbers, or Daewoo ends its buyback policy for retail customers, price predictions are speculation.

Glass's April editorial calls Daewoo cars 'doubtful stock' after a few got into the market with 'disastrous results'. 'We have found dealers who have taken 'proper' used Daewoo models as part exchanges which have been difficult, if not impossible to dispose of,' says the comment.. Daewoo marketing director Patrick Farrell claimed Glass's prices had been brought into line with 'other leading industry used car value guides. With the first used Daewoos changing owners and finding their way into the used market, and bearing in mind the relatively low volumes entering the used car market to date, there will some initial pricing inaccuracy and market price fluctuations.'

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