Fleet News

Buy early to maximise values, CAP tells fleets

THE window for maximising residual values will narrow under the new twice-yearly registration plate change, so fleet operators will have to pre-plan and act swiftly to secure the best prices for ex-company cars. CAP Motor Research has advised fleet managers to buy cars early in the year so that in three years' time they sell those same cars between January and March which it predicts will the strongest resale months under the new system.

'In this period used demand will strengthen as spring approaches while used supply will remain modest in the run up to the new plate rush in March,' it says. 'Resale prices are now likely to stagnate from late spring into summer and dip sharply at the year end,' it forecasts.

Fast-cycle fleets are expected to bear the brunt of any downturn in residual values under the new system, with the value attached to a new plate declining. 'It may create the perception of more used cars on the market, depressing values generally. First to be hit will be late plate residuals. At worst, the first year decline could be sharp,' says CAP.

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