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The residual value expert's view
Contrary to BCA and Ogilvie, which claim second-hand buyers are less attracted to badged low-CO2 cars, residual value expert Glass's believes there is an increasing demand for such models among the buying public.
Rupert Pontin, chief car editor at Glass's, explains: "The used car market is beginning to develop an interest in these cars as customers are starting to be specifically drawn to them from a running cost perspective. As such we expect to see an increase in popularity in the trade, although values for these are likely to remain stable and values for the 'normal' models are likely to decrease where there is a low-emission alternative."
He adds that fleets shouldn't necessarily expect stronger returns from such models, which comes down to spec again: "It depends on the spec of the car. Although it may have the low-emission engine, the level of spec overall is quite low, and as such, less appealing in the used car trade and the retail buyer's perspective."
The basic economics of fleets buying these models in bulk has hampered their residual values, too.
Pontin continues: "Eco models are obviously attractive to fleets because of the lower tax and National Insurance bills that come with them. However, the popularity of cars such as the BMW 3-series Efficient Dynamics in this sector has been such that residual values have suffered."
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