Fleet News

'Second half' cars are ageing quicker, warns price expert

CARS registered in the second half of the year are losing value more quickly as their registration 'ages' within months as the new year arrives, residual value experts are warning.

Unlike 02 vehicles registered in March, those that join fleets after September have four months before their registration is 'out of date', leading to a knock-on effect on residual values, claims PLEX Prices.

John Coates, editorial director, warned: 'A vehicle's period of maximum prestige or image is reduced to mere months before the following year's registration plate is introduced, 'ageing' the car prematurely and hitting its residual value hard.

'We are also struggling to justify even the smallest of premiums for a 2002 51 over a 2001 51 numberplate.'

However, this may be the price companies pay for greater stability in the used car market in future, the firm said, spreading demand throughout the year to avoid sudden surges of used vehicles that create oversupply and damage residual values.

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