Fleet News

Survey shows big variation in depreciation forecasts

VEHICLE depreciation forecasts differ sharply among leasing companies in France, Germany, Italy and the UK, according to an independent industry survey.

The latest survey from Yewtree.com reveals that French leasing firms depreciate their executive cars more than leasing firms in the other three countries, while the Italians depreciate their executive cars the least - a reflection of the respective national markets for large prestige cars.

Yewtree.com collects residual value data from the majority of the leading leasing companies in France, Germany, Italy and 90% of the top 50 firms in the UK.

The company then weights and statistically analyses this information, and its results identify significant national differences and highlight the opportunity for the cross-border purchase and disposal of vehicles.

Depreciation is the largest cost within a lease rate, and the difference in depreciation in real terms (rather than percentages) is responsible for significant differences in national lease rates. A small car such as a Peugeot 306, Opel Astra or Ford Focus will lose €7,400 over three years/100,000km in Italy, €8,800 in Germany and €11,500 in the UK.

In the medium sector for cars such as the Opel Vectra and Citroen Xantia, France enjoys the lowest depreciation, although prestige cars like the BMW 3-series lose their value more greatly in France than either Italy or Germany.

The UK's high car prices, subject of a Government investigation, mean British fleets lose more money through depreciation than their French, German or Italian counterparts.

  • For more information e-mail: info@yewtree.com (April 2000)
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