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Ford Mondeo depreciation ‘better than rivals’, says CAP

Better used value retention than BMW 3 Series, Audi A4 and Volkswagen Passat has been forecast for the new Ford Mondeo by at CAP Automotive.

CAP Gold Book also expects the new Mondeo to be worth £1,750 more, after three years, than the previous model was at three years old. That’s the biggest uplift any version of the Mondeo has ever had over its predecessor.

But in the hotly-contested company car market what is most remarkable is the new Mondeo’s predicted used value lead over the current incarnations offered by its premium German rivals BMW, Audi and Volkswagen.

According to Gold Book a diesel Mondeo 2.0 TDCi ECOnetic Zetec will hold onto 42.7% of its new list price, after three years and 30,000 miles.  That compares with 38.3% for a diesel Audi A4 2.0 TDIe SE, 36.8% for a BMW 3 Series 318d SE and 41.6% for a Volkswagen Passat 2.0 TDI Bluemotion Tech Executive.

Ford maintains the predicted advantage at higher mileages too and the petrol version even stretches the lead over its German premium rivals.

At three years, with 60,000 miles on the clock, a petrol Mondeo 1.5 EcoBoost Zetec will be worth 36.1% of its new list price, beating an Audi A4 1.8T FSI 170 SE’s 31.4%, a BMW 320i SE’s 32.3% and a Volkswagen Passat 1.4 TSI 160 Executive’s 31.5%.

It’s a milestone in Ford’s design and engineering history, in a car sector which once saw the phrase ‘Mondeo Man’ coined as the definition of ordinary.

Dylan Setterfield, who heads the forecasting team at CAP, said: “The new Mondeo is anything but ordinary and its sheer good looks are a big contributor to such strong expected value retention as a used car in three years.

“It’s a winner inside too, with premium fit and finish, but the engineering underpinning the whole package is also excellent. 

“The old Mondeo was a fine drive and hard to improve on but the new version offers an even more comfortable experience.

“Ford’s EcoBoost and ECOnetic engines are even better in their new versions. Imagine being told five years ago that in 2014 a 1.5 litre petrol engine in a large family car would give you 160 bhp of poke and 50 mpg, but that is today’s reality.”

Setterfield stresses that an important contributor to CAP’s positive future view of the car is Ford’s stated plans not to oversupply the market.

He said: “As long as Ford stick to their guns and aren’t tempted to saturate the market with heavily discounted new cars, supply won’t outweigh the strong future demand we foresee for the new Mondeo as a used car.

“Most car-makers are building more cars than Europe really wants but Ford has taken some tough decisions around reducing capacity, with the closure of its Genk plant. It is Ford’s customers who will ultimately benefit from that.”

Setterfield also warns that Ford’s competitors will not accept being overtaken by the blue oval for long.

Already the signs are that next year’s Volkswagen Passat could emerge as a best-in-class car. And new or facelifted versions of Audi A4 and BMW 3 Series next year will keep the sector hotly contested.

But, for now, Mondeo Man has the satisfaction of driving a car tipped by the UK’s leading independent car information experts to hold its value better than three legendary German brands renowned for low depreciation.



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Comments

  • Rob Chisholm, Managing Director, Applewood Vehicle Finance Ltd - 26/11/2014 11:31

    Having driven the new Ford Mondeo it deserves these predicted RV's - it is a simply beautiful car in all respects and makes the premium badges look what they are - overpriced and overrated.

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  • ReliantRegal - 26/11/2014 11:48

    Let's not forget that a residual values forecast is a mere snapshot of a predicted value three years in the future. As the Mondeo is still new, this figure would be based on the first vehicles as they reach three years old, at which time there will be high demand.

    If Ford could maintain the consistent level of resale value that the 3 Series has over the same period - let's remember that is already so way through it's lifecycle - to that Volkswagen seems to maintain over sustained period, that would indeed be impressive. Both BMW and Volkswagen have strong records on this that speak for themselves.

    Stories like this create the wrong impression. People tent to misunderstand the ephemeral nature of a residual value forecast in a given month.

    I wonder whether we'll see stories a couple of years in the future about whether the Mondeo has maintained this trend. I very much doubt it.

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    • ReliantRegal - 26/11/2014 11:51

      It's also strange that we're looking at a retail lifecycle for the diesel model comparison, and a fleet lifecycle for the petrol models. Not sure too many petrol models will end up on fleets.

      I wonder if the diesel car has the same advantage over three years/60,000 miles.

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    • Rob Chisholm, Managing Director, Applewood Vehicle Finance Ltd - 26/11/2014 12:30

      @ReliantRegal - We have been seeing more inquiries from fleet/co.car drivers on petrol engine models this year.

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    • Dylan Setterfield - 26/11/2014 13:35

      @ReliantRegal - Yes, the diesel Mondeo is 35.7% at 36/60 (A4 32.3%, 3 Series 31.0%, Passat34.8%). The press release was actually intended as a consumer piece, hence the inclusion of petrol data.

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  • Bianca Castafiore - 26/11/2014 14:06

    The new Mondeo is certainly a great looking car. I have had one of each model shape Mondeo and all have been good trouble-free cars which get better and more refined each time. The added advantage of the Mondeos is that they have indicators fitted. Sadly, Audi and BMW don't seem to think these are necessary and only a few cars have them fitted, presumably at extra cost.......

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  • MR.Bean - 27/11/2014 11:33

    After reading the article I personally don’t think CAP the “experts” got it right with their basic numbers.
    As mentioned before they are not comparing like for like due to lifecycle and other factors. I find it very odd to see CAP using the old Passat and not the new one.
    If we look at the new Mondeo vs the new Passat the numbers show a different outcome. According to December’s numbers the new Mondeo is now returning 41% but the new Passat 43%. As you can see when looking like for like you get a very different number.
    The A4 is due to be replaced in 2015 and the BMW 3-Series due for a facelift in 2015.

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    • Rob Chisholm, Managing Director, Applewood Vehicle Finance Limited - 27/11/2014 12:03

      @MR.Bean - They acknowledge what you say in the article. The Audi A4 in particular is in desperate need of an update - the new Mondeo shows that up dramatically when compared side by side.

      The BMW will be, as you say, a facelift. It won't dramatically affect the vehicles RV's. Along with MB, BMW have been subsidising the sales of the 3 Series to a dramatic degree. Audi have also been doing that with the A6 (which the Mondeo is in size more closely related to now), and in less direct ways with the A4. The German brands have been as active in the price led war as anyone - to the degree that they have in many ways allowed the field to be more level making their own products much less exclusive than they have ever been.

      Once they come out of the challenging circumstances they find themselves in across the rest of Europe, and stimulating the UK market simply because it is the only one able to respond, then many people will be wondering why they should suddenly go back to paying the prices Audi, BMW and MB start demanding. Particularly when there are such brilliant products as the Mondeo and new Jaguar XE available and offering great value for money, quality and style.

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    • Rob Chisholm, Managing Director, Applewood Vehicle Finance Limited - 27/11/2014 12:07

      @Rob Chisholm, Managing Director, Applewood Vehicle Finance Limited - Apologies for my dramatic overuse use of the word 'dramatic' :-p

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