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ADESA highlights WLTP fleet renewal delay
Date: 26 November 2018 | Author: Sean Keywood
Remarketing firm ADESA has joined the ranks of fleet industry organisations predicting delays in fleet renewal because of WLTP.
The government is holding a review into how the new vehicle testing regime, which has caused some increases in official CO2 emissions figures, will affect company car tax.
With the results not due until spring, ADESA says fleets are likely to run existing cars for longer and delay vehicle disposal, resulting in older and higher mileage cars being defleeted in 2019.
Managing director Jonathan Holland said: "Fleets are faced with the prospect of being unable to make informed decisions on sourcing new vehicles until the government concludes its review in the spring.
"This means many businesses who had extended vehicle life cycles, as a result of the introduction of WLTP in September, will look to extend them even further.
"Next year we can expect to see an influx of de-fleeted cars outside the traditional three-years/60,000 miles profile entering the wholesale sector and that could have an impact on desirability and values."
According to Holland, the challenge facing the sector will be to remarket those defleeted cars as efficiently as possible to reduce the impact of book drops, and achieve the best possible values for fleet customers.
"With older stock the need for transparent vehicle descriptions is even greater than usual, as well as the ability to remarket the cars as soon as they become available through specialist upstream remarketing channels," he said.
"Dealers across the country are waiting to replenish their forecourt stock with defleets, so accurate descriptions and speed to market will ensure better results through sales proceeds and decreased days to sale."
