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The start point for the best source of fleet information |
Location, location
The old adage is that 4x4s are heavily affected by where they're sold throughout the country and Davies confirms that this is very much still the case - to the point where the exact type of 4x4 will perform differently depending on where it is sold and what it will be used for:"There are two visible trends for 4x4s - one for working 4x4s and one for lifestyle SUVs. In those counties and regions such as the south-west, Wales and Scotland, 4x4s are seen as a working vehicle - hence vehicles such as the Discovery, Defender, Ssangyong etc are in demand."
He continues: "In the south-east where the modern-day SUV is an integral part of family and SME business life, the higher-spec higher-value 4x4s are in high demand in the used market."
Hannah doesn't agree, though. He acknowledges the assumption that bigger cars do well outside of the city and smaller ones perform better in it, but suggests that even that may be something of an urban myth.
"There are no real historical trends here other than the standard: larger-engine 4x4 and estate cars will tend to sell better in the sticks, with the smaller, easy to park, more frugal cars doing better in the city. This may well be an urban myth as it is almost impossible for us to track where our cars end up."
When not where
Remarketing experts are keen to point out that when a vehicle is defleeted has more impact on price and popularity than where. Hannah explains that the time of year and the weather conditions surrounding a sale can even have an effect on regional prices.
"What is still very relevant is seasonality, where convertibles or coupe convertibles do better in spring and early summer, with any form of four-wheel drive vehicle doing better in the winter. This has been even more obvious in the last few years with the more harsh winters we are getting in the south."
Opinion is split as to whether or not it's worth a fleet manager's time investigating regional differences in used car price and performance. Hannah is well and truly against it, and reckons you're better off pooling your resources elsewhere to get the best results.
"I don't think there is any added value in this. you should look at the market in the month for the vehicle you are selling and make sure you achieve the best price in the market relating to that product. If it's desirable it will do well anywhere."
Davies, however, thinks it can be worth your while as long as you're quick to relocate the cars, you pick your models, and you've a shrewd business head on your shoulders.
"The very rapidly changing dynamics of regional differences in value cannot be fully exploited unless ultra-rapid relocation of the cars can be achieved, so one needs to be no more than a good bookmaker if one wishes to attempt to exploit regional differences to a level of gain that would outweigh the transportation costs," he says.
"Generally, some clever and knowledgeable traders can shift very specific car types and variants with some success, but only in small numbers and generally on slightly more exotic vehicles rather than the volume stock."
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