Fleet News

Marketwatch: Values crash alert just ‘scaremongering’

IT is only a matter of time before the secondhand market recognises the benefits of diesel-engined cars, and reports that diesel residual values may crash in the future because of huge influxes of volume are scaremongering, according to Ian Tilbrook, managing director of ING Car Lease.

He said once secondhand buyers choose a diesel, they will not go back and added: ‘Diesels are popular with fleet managers because of the tax savings they generate and there will be an influx into the market in the longer term. However, it is only a matter of time before the secondhand car market recognises the benefits of diesel too – particularly in terms of fuel economy.

For many individuals, once they have had a diesel they are converted and, as technology improves, not only are diesels more economical, they are now bridging the gap in terms of performance.’

Tilbrook recommended some basic steps fleets should take to protect their RVs in any case, concentrating on specification, sector, colour and mileage. Secondhand car buyers are demanding CD players, air-conditioning and alloys as standard on all cars, with leather upholstery, automatic gearboxes and satellite navigation helping to get excellent returns on large or premium vehicles.

Costs should also be balanced between choosing premium and budget – with a cheap front-end price not always ensuring the best running costs. Metallic paint will always outperform solid colours, although silver is in danger of becoming the ‘new white’, because of its popularity, Tilbrook warned.

Star car

CAR: 2002/02 BMW 530d Sport
MILEAGE: 45,000
WHERE SOLD: Manheim Leicester
WHEN: July 8, 2004
CONDITION: Good (CAP Clean)
HOW MUCH: £17,250
% OF CAP CLEAN: 110%
SALE: Direct from a leasing company
BACKGROUND: Finished in silver, the 5-series was in good condition but more importantly the Sport has a high level of specification and the 3.0 litre diesel works very well in this car. Despite the mileage being slightly above average, the diesel 530 doesn’t come up too often at auction and this one had a queue of buyers bidding on it, which pushed the price above CAP Clean. Manheim had prepared it to a high standard so it was ready to go straight onto a dealer’s forecourt or was bought by a trader to order.

What’s it worth?

If your car is leased or outright purchased, knowing its value is vital, particularly if you want to offer staff the chance to buy the vehicle at the end of the contract. Use our weekly guide to benchmark prices.

Honda Civic 1.6 VTEC S 5dr
Age: 0252
Mileage: 20,000 miles
Value - Trade
CAP Clean: £6,550
Glass’s Guide: £6,900
Retail to staff price guide: £8,010
Retail price source: www.parkers.co.uk based on private trade for good condition vehicle

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee