Fleet News

Used values hold firm despite new sales rise

USED car values are holding firm in the long term despite recent record sales of new cars, while diesels are resisting predictions of increased depreciation, according to industry experts.

May's issue of CAP Monitor reveals that despite cause for concern on high volumes of new cars on short term forecasts, there is little to suggest that such volumes will have a negative impact on values of cars between a year and four years old.

These views are backed up by BCA, where buyers are bidding over the odds for well-presented typical fleet cars.

Tom Madden, BCA director for customer affairs, said: 'Exceptional demand leads to exceptional prices, and when professional buyers are paying an extra £250 to £500 for bread and butter cars over last month's prices the true extent of the demand can be seen. This high level of performance has generally been seen on the later plate stock and into the two and three-year-old sector, but recent weeks have seen older higher mileage cars enjoying a 'halo' effect. Where younger stock is not available at the 'right' price, these older cars become sought after.'

Despite recent claims the growth of the diesel market, sparked by changes to company car tax rules, would hurt used values for oil burners, evidence shows that demand is still thriving.

Madden said: 'Diesel is continuing to grab the buyer's attention at remarketing time and interest in the best examples far outstrips supply. 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 private motorist – who is perfectly well-informed when it comes to motoring on a budget.

'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 leaden-footed driver and the lower servicing costs all combining to make diesel an attractive package.'

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