Fleet News

Luxury cars service warning

REFORMS to the car distribution block exemption system could damage residual values on luxury cars, according to CAP Monitor.

It is warning fleets that residual values on luxury cars could fall by as much as £1,000 if the service history does not come from the same provider.

Once block exemption reforms are introduced in October this year, fleets will be able to service vehicles from a number of outlets, not just from the main dealer network.

Jeff Knight, editor of CAP Monitor, said that for ordinary vehicles, having a full service history from the same provider is not the issue it is for luxury vehicles.

He said: 'When prestige vehicles enter the disposals arena the buyer will continue to view service stamps from the originating dealer network more favourably. This is a function of the perceived sophistication of cars at the higher end of the market, along with the fact that the more exotic a car is, the more specialist attention it requires.

Non-manufacturer service histories could reduce the value of a car originally costing £35,000 or more new by up to £1,000 and more for higher end models.'

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