Fleet News

Worst RV performance for years

THE fall of used car values has accelerated with residual values tumbling on average 7.7% this month year-on-year - the worst performance of the secondhand market for many years, according to the CAP Motor Research Index. The residual value fall started around July 1998 and has continued on almost a monthly basis due to a lack of confidence fuelled by rising interest rates and a hold-off because of the Competition Commission Inquiry.

This month the worst affected sectors are executive cars (down 11.3% year-on-year), lower medium (down 9.8%), sports cars (down 9.5%), superminis (down 8.8%), 4x4s (down 7.5%) and MPVs (down 6.5%). But fleet chiefs should not be fooled into thinking the 2.9% year-on-year fall in the value of upper medium sector cars is good news. CAP senior economist Ramesh Notra said: 'The upper medium sector led the decline and prices have now bottomed out.

'Following a strong start to the year, the market has slumped badly. Retail demand has fallen so dealers have little need to restock. This is taking a heavy toll on values.' Although the Index measures vehicles at three years/30,000 miles, Notra said the slump applied to vehicles at three years/60,000 miles.

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


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