Average damage costs to company cars being incurred by fleets has more than doubled in the past 18 months.
In February 2010, the average repair bill for a vehicle from the fleet sector was £110, according to Manheim. The figure for June 2012 was £246.59 – an increase of 123%.
The value of the damage is based on the BVRLA’s ‘fair wear and tear’ assessment of the car.
Craig Mailey, marketing director at Manheim, said that they had only just received the data and were still working out what may be behind the figures. “What is safe to say though is that you’re getting cars that are older and with higher mileage.”
However, with a shortage of good quality stock in the market currently pushing up fleet values, does it really pay for a leasing company, or an organisation that purchases its vehicles outright, to pick up the bill for costly repairs?
Pricing expert Adrian Rushmore from Glass’s doesn’t think so. He said: “With the strength of the market as it is, why spend the money?”
That view was backed by Daren Wiseman, Manheim valuation services manager.