Fleet News

Servicing demand at Kwik-Fit set to grow following residual value boost

Kwik-Fit is predicting that more fleets will use its centres for car and van servicing after a leading figure in the National Association of Motor Auctions confirmed that a franchised dealer’s service book stamp was not required to maintain optimum residual values on many vehicles.

Although an increasing number of fleets, contract hire and leasing companies and rental firms are using Kwik-Fit centres for car and van servicing - as well as MoTs when required - some operators believe that not taking vehicles to a franchise dealer could damage used values.

But, Tim Hudson, vice chairman of the National Association of Motor Auctions, and managing director of vehicle remarketing company Aston Barclay, told a break-out session on remarketing at a recent British Vehicle Rental and Leasing Association industry conference: “There is a threshold in most manufacturer ranges that determines whether the franchised dealer stamp is critical in eyes of the used car buyer. Those requiring a franchise stamp tend to be at the premium end of the model range.”

However, whether having vehicles serviced at a franchise dealer or through the independent sector, such as at a fast-fit organisation like Kwik-Fit, Mr Hudson said: “What is essential is that company cars and vans have a documented service history across their fleet life to ensure top residual values are potentially achievable.”

Kwik-Fit Fleet sales director Peter Lambert, who attended the seminar and was in the audience for the break-out session, said: “Confirmation from an independent authority such as Tim Hudson of the National Association of Motor Auctions will give more fleets and leasing companies the confidence to have their vehicles serviced at Kwik-Fit centres in the knowledge that residual values will not be damaged.”

Kwik-Fit launched fleet vehicle servicing five years ago and demand has increased annually. In 2011 the company has seen a 35% year-on-year rise in the number of company-owned vehicles being serviced at its 673 High Street centres.

Lambert concluded: “Competitive pricing and convenience are crucial to the corporate sector and Kwik-Fit Fleet’s vehicle servicing fully meets those requirements.

“With the vast majority of company-owned vehicles being outside the premium sector we anticipate further growth in fleet vehicle servicing at Kwik-Fit in 2012 and beyond as a consequence of any residual value damage fears being firmly allayed.”

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


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