Fleet News

Fleets enjoying a residual high

RESIDUAL value experts claim the fleet industry will have achieved record values for end-of-contract cars during the first quarter of the year.

Figures produced by remarketing giants BCA and Manheim show the average values for ex-fleet cars in the auction halls are rising. In its Interim Pulse data, BCA suggests the industry is heading for a record quarter.

A spokesman said: ‘So far in 2007, prices for the three-year-old, 60,000-mile car have averaged £6,851, a rise of £286 (4.3%) against the last quarter. Potentially this is the highest quarterly figure recorded in the sector to date and suggests the first quarter as a whole will establish record values for fleet/lease cars. Year on year, the figure is £326 ahead, or just under 5%.’

The study also found that following five quarters where average mileage rose, figures have fallen by about 2,500 miles this year to date.

The average age of the car has fallen after five quarters of successive rises and the average performance against CAP Clean also increased by nearly one point against the last full quarter of 2006 to 97.4%.

The company figures show that the rise in average values for ex-fleet cars has risen equally between various body shapes, with all sectors noting a rise, apart from MPVs which fell by £58.

Figures produced by Manheim, as part of its Market Bulletin monthly report, show that year-on-year, the average values of fleet cars are up by £400.

It found that in February, prices of used fleet cars eased back by £206 to £5,630 but this was against a significant rise in values in January this year over December 2006, up by nearly £500.

The study said: ‘There was very little change in age and mileage, averaging 43 months and 56,000 miles respectively across all models.’

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