Cap: residual value downturn pressures increase
16 October 2013
Author: Tristan Young
Increasing new car registrations both over the past year and in future will mean fleet RVs could fall in future, according to CAP's operations director, Adrian Rushmore.
Speaking at last month's VRA Conference, he pointed out that over the next four years the vehicle parc for cars up to five years old will increase by 8%, hitting 10.8 million vehicles in 2016.
However, Rushmore's concern also highlighted the sharp increase in the number of vehicle derivatives and options, which are proving increasingly difficult to track in the used car market. The result is that values tend to be set against the basic model, rather than the one with options.
"The number of models available is up 15% in three years and option packs are up 187%," said Rushmore.
He highlighted the Mini as the originator of these option packs.
"The problem with the Mini is that you can't tell from the V5 if they have either a Chili or a Pepper pack so we only see the basic model.
"This problem could get worse. The Mini may have started the trend, but the DS3 and Adam also doing it now and it could go on.
"My fear is that people won't even know what to look for in future."