Good housekeeping has spared Peugeot from the worst effects of the economic crisis – and a decision to withdraw one of its models from ‘expensive’ sales channels is helping boost residual values, it was claimed at the Paris Motor Show.
“I decided to pull the 407 range out of so-called tactical fleet business that carried high discounts and cut our daily rental volumes from 21,000 to 13,000 six months ago,” Peugeot UK managing director Pierre Louis Colin told Fleet News.
“We had a high share of national daily rental business last year and were left with a significant number of buy-back vehicles that accelerated the decline in residuals on the 407 and affected our new car sales performance.
“Our contract hire rates became so costly that we couldn’t even compete with the premium brands.
"Now we have fewer used examples on the market, our residuals are improving again.”