Large fleets should explore the opportunity of disposing of their end-of-life vehicles in other countries to maximise their residual values.

The advice comes as a new study shows that the average residual values in Europe for 40 key three-year-old models have dropped 0.25% over the past 12 months.

But improvements to used car prices in some countries have slowed the European downward trend.

Rick Yarrow, managing director of Automotive Directions, the company behind eurocarprice.com that compiles the EurotaxGlass's index, said: 'Some companies should definitely start to explore whether they can buy cars in one country, drive them in a second and dispose of them in a third.

'I understand totally why this is not possible for many companies, the logistical aspect is too difficult. But for multinational companies with cars in many different countries, it is certainly worth investigating.'

The study's findings present mixed implications for fleets although, as in previous studies, premium models continue to do well, particularly the Audi A6 and BMW 5-series petrol models and Opel Omega and BMW 5-series diesel models.

BMW's 3-series was the best upper medium petrol performer and also performed well in its diesel variation, although the best upper medium diesel performer was the Mercedes-Benz C-class.

Commenting on its findings, the study said: 'Behind the overall average, there are significant variations between countries.

'The Netherlands and Belgium are currently showing the strongest performance with Austria, Germany and Spain also showing positive trends among the EU countries.

'Values in Portugal recovered in the last quarter after a sustained period of declining values. 'France, Italy and the UK are, however, showing downward trends.'

The index adds that there has been evidence of the premium for diesel models over petrol models reducing in previous quarters.

'However, stronger performances, particularly in the small car segment have at least halted this trend, although the gap is still narrowing in the volume lower and upper medium segments.'

EurotaxGlass's study found that the executive car segment 'continues to show the strongest positive trends'.

'The Audi A6 is the strongest petrol model performer, while the BMW 5-series the leader among the diesel versions.

'The upper medium segment still has a marked difference in performance between the prestige models, particularly BMW 3-series, and volume models. The Nissan Primera has seen significant reductions in values, together with the Citroen Xantia, Peugeot 406 and Opel Vectra.'

The study added that the Ford Focus is now over three years old and has been added to the lower medium segment averages which has increased the overall averages for this segment.

'The Audi A3 and VW Golf have the lowest depreciation rates together with positive trends in values,' it said. 'The Opel Astra is also performing well. The Renault Megane, Toyota Corolla and Peugeot 406 are all showing declines in values.'

Figures show that small diesel segment has the highest increases led by the Renault Clio, VW Polo and Fiat Punto.

'Conversely,' said the study, 'the small petrol segment had the largest reductions.'

For more information visit www.eurocarprice.com.