Fleet News

Going 'green' could lose fleets thousands in RVs

FLEETS look set to lose thousands of pounds when gas-powered ex-company cars reach the second-hand market when compared to their petrol-engined equivalents. As fleets across the country go 'green' and add gas-powered vehicles to their fleets industry experts have calculated their residual values will be below those of cheaper, but similarly specced petrol models.

However, CAP chief economist Mark Cowling said the figures were not 'all gloomy' and claimed a significant increase in the number of gas pumps at fuel stations across the UK could see residual value forecasts revised. Presently there are 120 liquefied petroleum gas refuelling pumps in the UK and less than 20 compressed natural gas refuelling sites.

The July issue of CAP Motor Research 'Monitor Future Residual Values' predicts residual values for liquefied petroleum gas versions of Vauxhall Vectra and Omega models and LPG versions of Volvo's S70. Over three years/60,000 miles residuals on the Vauxhall gas cars are typically five percentage points or £300- £400 below those of their petrol-engined equivalents, but they have an on-the-road price of around £2,000 more. Values on the Volvo models are similarly predicted to be lower at around four percentage points down.

Calculated in terms of 'pounds lost' and on a Vauxhall Vectra 2.0 LS fleets would lose £10,320 on a petrol-engined saloon, but £12,545 on the equivalent bi-fuel vehicle.

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