However, fears over the impact of the millennium bug has led a number of CAP's customers to hold off introducing the latest software and means the new and the old system are being used simultaneously throughout the industry, causing pricing discrepancies. British Car Auctions, for example, said it analysed a typical sale of 120 fleet-entered vehicles and found that in 39 cases variances of £25 in valuations existed between 'old' and 'new' methods. This represented 33% of the total entry in the sale and the total variance under the 'new' system increased the overall valuation by £4,400 or nearly 2% of the sale value.
Tom Madden, BCA's director, customer affairs, said the disparity proved how invaluable auction hall experience could be in optimising residual values. Where CAP values have 'increased' without any shift in the real market, there was the possibility that vehicles would remain unsold despite achieving a true and representative market value, Madden added.