Fleet News

Older models steal a march on replacements

THE residual values of outgoing 'run-out' vehicles are currently higher than some of the newer models which replace them, according to the latest research from the CAP Black Book.

Discontinued lines such as the old-style Subaru Impreza and Ford Galaxy have both outperformed newer entrants to the market with factors such as styling affecting values. Tony Styles, senior editor of CAP's Black Book, explained: 'The new Subaru Turbo's unusual appearance was cited as a primary reason for buyers initially not taking to it in the same way as its predecessor.

'Even today there are fleet disposal managers continuing to see sizeable premiums for the old model. Taking a 2001 car, from when the models first co-existed in the used market, a Turbo 2000 01X at 30,000 miles has a CAP clean value of £11,750. A 2.0 WRX, at the same age and mileage is valued at £11,000.'

CAP also noted Ford Galaxy and Seat Alhambra discontinued lines generating premiums of £175 and £475 respectively, both giving higher values than their successors.

Styles said: 'Often we will see an older car bounce back from well behind as the new example whips up fresh public interest in the model overall. If the old model falls away sufficiently, the price gap can become large enough to tempt buyers back to the predecessor and this extra demand then pushes values up for a time.

'Outgoing models are often also helped by higher levels of spec, which may be included to stimulate demand when the car is on run-out. The message for the used car professional, therefore, is that what at first seems common sense does not always stand up in the face of hard evidence.'

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