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Wright maintains that core fleet model equipment is vital: "Air-conditioning is now an absolute must for vehicles looking to quickly defleet. Bluetooth is another important modern consideration."
He adds that the colour of a vehicle plays even more of a part in determining what's popular and what isn't.
"Colours are subjective and manufacturers are very tuned into this, which is why they offer a range of individual and bright colours to suit individual needs. The big thing now is predicting the next big colour, which in my opinion, is the darker metallic browns as they are suddenly becoming very popular across the range," he says.
Henstock says that used buyers are savvy when it comes to picking the right spec level, and there is a danger that business drivers with more liberal choice lists can render a car less than popular when it's sold on if they don't spec it properly in the first place.
"The simple rule of thumb is that the specification should match the model. If you have premium and executive models on the fleet then they should have a good level of specification - attractive paint and trim, leather interior, alloys, all the expected bells and whistles - because low-spec premium cars can be difficult to remarket. The used buyer expects to see a decent specification on these models.
"With this in mind, user-chooser fleets should beware of badge snobbery amongst their drivers, where an allowance is stretched to breaking point just to get the 'right' badge on the bonnet.
"It's also worth remembering that while a higher-specification car may be more saleable and attractive to buyers, this has to be balanced against the additional cost at the front end."
Following the herd
It's all very well following the current trend and picking models that are currently all the rage with used car buyers, but that won't necessarily remain the status quo, and it's worth remembering that you're likely to be defleeting the cars three or more years down the road.
The advice from the remarketing fraternity is to deck out your fleet with as broad a spectrum of models as possible, as Henstock explains: "Depending on the size of the fleet concerned, it may well make sense to operate a broad range of vehicles, including the most popular vehicles alongside a selection of lifestyle models, premium cars, budget cars and whatever else fits the fleet's needs. This means you can offer the used market a range of vehicles at a number of price points."
Shoreham's Wright adds that it's worth throwing a few leftfield vehicles into the mix, but that needs to be balanced with a healthy amount of tried-and-tested models: "I would say the best approach is to mix it up and have a variety of vehicles. Don't go too safe and as long as you don't have all of your eggs in one basket, don't be frightened to have some vehicles do well and others not so well."
He also claims that if fleet operators are employing a lot of different vehicles they should be mindful of alternative-fuel models - even established hybrids - as they won't necessarily be considered as safe a bet by people buying them after a few years of use.
"Whilst a sub-two-year-old hybrid may well sell easily when it has some remaining manufacturer warranty to cover unexpected costs, you have to consider, how will it sell at four or five years when the vehicle is outside of its warranty and the onus is on the new owner to cover unexpected expenses?
"The cost of maintenance is an unknown for these non-proven vehicles, so at present, fleets may be safer with a standard vehicle."
Pontin surmises that a mixed bag of vehicles is the best bet for return on investment and that unconventional models should not be avoided, but he foresees a tail off in the residual values enjoyed by crossovers in future.
"At present there is no harm in a fleet operator looking at some of the new niche markets. The caveat here is not to overestimate return on defleet and to take care when forecasting residuals. These are young and vibrant sectors and, as such, create good residuals.
"However, as these sectors grow and more cars defleet to the market then residuals will start to suffer. The Nissan Qashqai is a perfect example of this," he says.
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Business Car Magazine © 2020 | Business Car is part of NS Media Group.
