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Options fail to boost RVs, says Cap
Date: 04 March 2011
Choosing a higher model derivative is a better way to protect residual values than loading a car with options, according to Cap.
The value specialist said optional extras retain just 20% of their cost new while a derivative uplift could retain up to 90% of its original cost.
As an example Cap claimed that three years ago the cost of adding cruise control, rear parking sensors, electro-chromic rear view mirror, automatic air-conditioning, multi-function steering wheel, interior lights pack and alloy wheels to a BMW 318d ES totalled £1520.
After 60,000 miles Cap said the value of these features had fallen to £300 - 20% of original cost.
In contrast, it claimed the cost of upgrading to the SE variant, with the same features list as standard, was £1030, of which £925 (90%) was retained after 60,000 miles.
Cap said understanding the value of options would help fleets make more cost-effective vehicle purchase choices and added that fleets would also benefit by placing more emphasis on options at remarketing time.
Operations manager Mark Norman said: "Expecting future buyers to be aware of what came as standard and what may have been an expensive extra is clearly unrealistic and if they don't know the origin of a feature they won't pay any more for it."
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