Fleet News

Fashion gives way to reality as 4x4 residuals fall by nearly 4%

RESIDUAL values for some larger off-road vehicles are dropping as people downsize to more economical and affordable models. Both CAP Motor Research and Glass's Information Services say rugged fashion has given way to the reality of difficult parking, costly maintenance and a general lack of refinement from many models.

Demands for space can now be met by MPVs which are coming on to the used market and as used 4x4s become more plentiful, prices are coming under pressure. The best performers in the sector tend to be the smallest, most 'car-like', such as the RAV4, or heavyweight 'farmers' favourites' like the Toyota Land Cruiser, Mitsubishi Shogun and Range Rover, which are seeing average depreciation.

As a whole, 4x4s have fallen in value year-on-year by 3.9%, compared with 0.9% for the car market overall. CAP has found mid-rangers to be the biggest strugglers. Since July last year a 1991 J-registered Land Rover Discovery 200 TDi three-door with 60,000 miles has slipped from a trade value of around £8,675 to £7,325, a fall of £1,350, twice the normal level of depreciation.

CAP publishing director Andrew Wilkinson said: 'A cliche it may be, but the closest many of these ever got to rough terrain was the supermarket car park humps. Because there was a large element of fashion, rather than practicality, that market was exposed more than others to changes in taste.'

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