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REMARKETING: Alternative bodystyles and rock-solid residual values

Date: 20 January 2014   |   Author: Jack Carfrae

BCA's Henstock agrees that, while popular, vehicles with alternative bodystyles need to be specced properly in the first place to get the kinds of returns that are being expected of them come defleet time.

"However," he says, "a combination of an attractive retail colour and a good specification makes for a very saleable SUV or crossover. As these are not typical 'fleet' cars or even typical 4x4s, hard-worked examples need to be competitively valued."

Rossiter surmises that, over time, the model mix hitting the used market will continue to diversify, which if anything will have a beneficial effect for fleets dispatching cars into the trade.

 

"I fully expect to see a continuation of what we see at present, which is a diverse mix of vehicles across most vehicle sectors. The result of increasing styles of vehicles available is a dilution of any one model being returned - and this is no bad thing," he says.

The residual value expert's view

Rupert Pontin, Glass'sGlass's Guide's chief car editor, Rupert Pontin, says the comparative strength of the residual values for crossovers and small SUVs is largely down to the fact that their novelty has not yet worn off with the buying public.

"At the moment most of these vehicles attract a higher residual value due to their rarity value," he says. "As manufacturers have explored new niche markets, used car volumes have yet to increase significantly and as such the buying public see these as exciting and different alternatives to traditional models."

He even cites particular models that are performing well on the used market at the moment: "At present we see particular strength in the Nissan Juke, Audi A1, Audi Q5, new Mercedes A-class, Skoda Yeti, Kia Sportage, Fiat 500 and Hyundai iX35. These are all pretty new models that are in short supply both in the new and used market."

Pontin agrees with Leaseplan's James Hopkins that the popular Nissan Qashqai may be on borrowed time when it comes to its previously acclaimed residual values: "There is, however, particular concern around the Qashqai as there are more of these becoming available this year and a new model is due soon."

He also warns fleets of the dangers of putting all their eggs in one basket with bodystyles, suggesting that there's no harm in going for a crossover or similar model in favour of, say, a lower medium equivalent if the boot fits, but it can be risky in the long run.

"If upfront cost and a robust forecast are evident then a funky desirable model will. give a greater return, but it can be a risk in a volatile market where production volume and the European market can quickly erode a niche sector," he concludes.

 



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