Fleet News

Residual collapse to be discussed at FN50 conference

Contract hire and leasing companies are predicting residual values will have fallen by up to 20% be early next year.

The majority of leasing firms are predicting minimum falls of more than 5%, while some say at least 10% and even 20% can be expected because of used car market turmoil.

A handful of leasing companies disagree, with predictions of a steady market or even growth in residual values of 5%.

But if the predicted falls occur, it would wipe hundreds of millions of pounds of the value of UK fleets, experts warn.

Leasing companies provided their view of the future during a survey in advance of the FN50 Conference, which takes place on November 4 in London.

One leasing company chief told Fleet News: “2008 has seen used vehicle values fall at their most dramatic rate since 1999, with rising fuel prices and the credit crunch having a significant impact on consumer confidence.

“Our expectation would be to have seen used values fall by up to 15% by December 2008, with a further 5% reduction at the start of 2009.

“We wouldn’t anticipate any real increase in used values until 2010.”

The hardest hit vehicles will be high-CO2 emitting cars, including 4x4s and luxury vehicles, the firms claim.

To help leasing companies and other industry suppliers make their predictions, a detailed expert analysis of residual values will be provided at the FN50 Conference on November 4.

Kevin Gaskell, president of EurotaxGlass's International, will provide delegates with in-depth analysis on the current state of the used vehicle market and provide valuable insight into what the future might hold.

For details and tickets, log onto www.fn50event.co.uk or call Sandra Evitt on 01733 468123.

 

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