Fleet News

Open eyes before wallet fleet managers warned

FLEET managers must go back to basics if they are to fend off falling residual values, CLM Fleet Management has warned. Residual values comparisons do not give all the answers to a buying process and companies should open their eyes before opening their wallets.

John Kelly, operations director of CLM, said: 'It should go without saying that you should select cars for your fleet which have a good resale value. Fashion trends and seasonal indicators and the ultimate end-user all need to be taken into account. No fleet manager wants to encourage doom blue or olive green into the fleet, as any retailer in the open market will testify.

'Neither should you buy a soft-top if the car is going to leave the fleet during winter and conversely, don't buy a 4x4 you will be selling during summer. Putting the wrong vehicle in the wrong seasonal market depresses prices and holds up sales.'

Furthermore, he said, avoid allowing drivers to opt for a low spec luxury car, as used buyers will simply opt for a better equipped car. 'What you save at the beginning in add-on specification costs, you will lose several times over at disposal,' Kelly said.

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