Fleet News

Marketwatch: Diesel outdoes LPG at resale time

USED LPG vehicles are good for the environment but not so good for the budget, according to auction specialist BCA, which says fleet managers should not expect a financial return on LPG vehicles when it comes to remarketing.

BCA general manager Graham Smith said: ‘High specification vehicles fitted with direct injection LPG units achieve a price parity with comparable petrol-driven examples, providing the mileage is not excessive.

‘What they will not do, however, is return a price performance comparable with a similarly-specified diesel powered model – which is far and away the preferred choice for the operator looking for economical transport.

‘While there may be many advantages for the operator in running alternative fuels, it will almost certainly be the clean-air ecology benefits of these vehicles that far outweigh any economic considerations. Be green to be good, but don’t expect to see a financial return at remarketing time for being eco-friendly.’

Examples of recently-sold LPG cars include a 2003 Vauxhall Vectra 1.8 LS Bi-fuel with 85,000 miles on the clock that went for £4,000. A 2002 Vectra 2.0 CD Bi-fuel saloon, with 95,000 miles, sold for just £1,150.

Smith said: ‘There is an element of the chicken and the egg for alternative fuels – if there were more, then professional buyers may feel more confident to buy for stock.

‘As it is, buyers see them as very marginal in the marketplace.

‘Fleets operating alternative fuels shouldn’t despair, however. The few examples we handle all seem to find ready buyers if valued in line with market expectations.’

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