Fleet News

Diesel RV fears are unfounded

DIESEL power is grabbing buyers' attention at remarketing time, despite fears that increasing sales of new cars using the fuel will oversupply the market and push down residual values.

There may be more about than ever before, but diesels are still relatively scarce – particularly high-tech common rail models.

Late used examples are difficult to source and those that are available are selling for a large premium over their petrol equivalents, British Car Auctions revealed. Recently at BCA a 'Y 2001' registered VW Golf 130 PD 5-door sold for nearly list price at 23,000 miles.

BCA's customer affairs director, Tom Madden, said: 'Interest in the best examples far outstrips supply and mileage is less of a factor, as their reliability over a long period and big distances is why they were purchased in the first place. The very reasons that make a diesel attractive to corporate users are equally applicable to the motorist.

'There is the likelihood of cheaper road fund tax based on emissions, the real savings in fuel consumption that can see 50-plus mpg for even the most heavy-footed driver and lower servicing costs all combining to make diesel an attractive package. Their overall reliability and longevity will also appeal to the cost conscious motorist.'

Madden added: 'When it comes to remarketing your diesel cars, the normal rules apply. The condition of the vehicle is very important and the best ready to retail examples will always attract premium values. A full service history promotes buyer confidence as does an independent engineer's report carried out on your behalf by the auction company. Pre-sale vehicle preparation is a must.'

He added: 'An ex-fleet diesel – well-maintained, in a good-specification and colour, direct from the one company owner – will always be a desirable, premium product at auction. Make sure the used cars your fleet 'manufactures' include a sprinkling of these little diamonds.'

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