Don't let residual values disappear in smoke

Date: 20 June 2007

British Car Auctions (BCA) is warning that the impending ban on smoking in public places could be especially damaging for businesses if company drivers decide to light up in their company vehicles instead.

BCA's network operations director Simon Henstock commented: "If company drivers find it increasingly difficult to find a place to have a cigarette, they may be tempted to smoke in their company car or van. This is bad news for the vehicle owner, because when it is time for it to be sold, a 'smoked-in' vehicle is much less appealing to buyers. Nicotine stains build up in the cabin, the cigarette smell lingers and almost inevitably there is burn damage somewhere."

When the new legislation comes into force, many company vehicles will be classified as being primarily used for business purposes and smoking will not be allowed in them. It is the employer's duty to enforce the smoking ban.

Henstock added: "As the vehicle owner, any business has a duty and a right to protect the value of the assets it operates. Smoking in a vehicle reduces its value. Research we have carried out with buyers (see table below) shows they place presentation on a par with, if not above, a service history or details of previous ownership.

"And presentation is not just about how the vehicle looks, but how it smells! So employers need to make sure their drivers aren't lighting up in company vehicles - especially after the smoking ban comes into force this July."

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