Fleet News

Repositioning boosts Rover 25's residuals

ROVER'S repositioning of its 25 model into the supermini segment and price reductions against the axed 200 has seen it return strong residual value forecasts. The January issue of CAP Monitor - Future Residual Values shows the £8,715 on-the-road 25 1.1i 3dr will retain 40% of its value after three years/60,000 miles - costing £1,746 a year in depreciation.

Fiat's Punto 1.2 ELX 3dr retains 37%, a Ford Fiesta 1.25 Zetec 3dr 36%, while a Peugeot 206 1.1L 3dr pips the 25 at 41%.Residual value forecasts for the 25 range from between 35% and 40% for petrol models and 36% to 37% for diesel-engined models. CAP forecasts for the 25 range include 1.4iS 3dr at 38%, 1.6iS 5dr 37%, 1.1i 3dr 40% and 1.6iL 5dr 37%.The company took the same action with the new 45 model, on sale this week, by pitching it against lower medium sector models such as the Ford Focus and Vauxhall Astra. The 400 range was marketed into the upper medium segment containing cars such as the Ford Mondeo and Vauxhall Vectra. However, Rover has admitted that there will be some spill-over into this territory by the 45 saloon range.

Residual value figures for the 45 were not available at the time of going to press, although they are expected to show the same increases that the smaller 25 has over the old model - pushing residual values from the 30% mark for the 400 to the mid-to-late 30s for the 45.

Mark Cowling, CAP Motor Research chief economist, said: 'A lot of this performance is due to Rover's actions in realigning its ranges. The 200 model was not a lower medium car and now the 25 is aimed at supermini models which is where it was being sold used anyway. The 400 model was up against Ford Mondeo class cars, but now is being marketed at lower medium sector cars such as the Ford Focus and Vauxhall Astra. Rover reduced prices and repositioned the range and it is now seeing the benefits.'

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