Fleet News

Small engine cars continue to command strong prices

New data from G3 Remarketing shows that clean, small engine cars are still continuing to command strong prices in excess of 104 per cent of Cap, particularly the Hyundai I10 and Peugeot 107 models.

In stark contrast to this, big petrol engine cars that have a high specification are offering a great return due to the export market maintaining its strength. As always, ready-to-retail cars are continuing to command strong prices and with a larger selection of vehicles in the marketplace, more people are fighting for the ‘clean’ cars, possibly skewing their true value. Most notably the rise in values of the ‘executive’ diesel cars 5 series, A6/A8 and Jaguar models rising by up to, in some cases, 7 per cent.

The average age of fleet cars is slightly up at 39.8 months and showing an average of 46,000 miles.

Growth in the volume of used vehicles sold via online auction up 21 per cent year on year, with finance cars contributing to approximately 6 per cent increase in these volumes, the rest made up through the increase in fleet vehicles to the marketplace.

Fleet and lease vehicle values are generally down by approximately 1 per cent and this is expected to continue throughout the next few months, although prices are up year on year by up to 22 per cent.

Cars that are being considered for refurbishment are continuing to give a greater return on investment, with last month on an average spend of £175 of smart repair returning a greater return of an additional £253 return.

Tom Marley, head of operations at G3 Remarketing said: “Small cars are continuing to hold their value as consumer demand continues to increase for smaller, more fuel efficient, lower tax vehicles.

“There has been a 23 per cent increase in nearly-new and almost deliver mileage vehicles into the marketplace which is due to the continued early repayment defaults or a larger take up in cooling-off periods when a new car is purchased.

“There is a greater return on investment for those companies taking the opportunity to refurbish cars which could raise a sale above average values by as much as £600 - 700 if they only spend £175.”
 

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