The average age of vehicles coming off company car fleets is remaining consistent over the year so far at around three years and seven months, up slightly year-on-year.
The average disposal miles are up slightly year on year for this month at 59,000 as opposed to 57,500 this time last year, according to G3 Remarketing.
It has also found the average value of the fleet vehicles was up slightly in March to around the £9,000 mark which is surprising as it was expected the annual average value would dip this year by a hundred or two hundred pounds.
A G3 Remarketing spokesman said: "Audi product is also proving interesting and with the largest sway in the market place with standard spec A4 proving a challenge in the market place but A4 with spec is going very well and achieving at times in excess of 118% of CAP values.
"In addition to this Mini product is remaining relatively strong and on average achieving in excess of 117% of CAP Value."
The penetration of diesel product has lessened in the market place, which is probably due to less cars brought new into the fleet market three – four years ago.
However, residual values for diesel product is still strong even though the prices at the pump are cheaper for petrol.
In contrast to this, large petrol engines are commanding high prices and great value against guide prices as they are in demand for the export market, so fleet managers and procurement teams should not discount these, says G3 Remarketing.
That said though the average value of a fleet and lease diesel car is at times as much as 30% more than its petrol counterpart.
Small lower emission and low tax cars still performing strong some Peugeot 107, Citroen C1 and DS3 products achieving in excess of 110% of Cap values. In addition to this the big petrol engine high spec cars are achieving a "great return".
"We are seeing an increase in nearly new almost delivery miles vehicles into the market place up 15%. This may be due to early repayment defaults or a larger take up in ‘cooling off’ periods when a new car is purchased.
"Financed cars seem to be achieving a greater return on investment when the companies look to refurbishment opportunities before offering them for sale. On average values can increase by as much as £600 to £700 for a spend of only £200.
"From a finance perspective the higher performing cars seem to be those under the £7,000 mark or over £12,5000 which always achieve a greater return against guide prices."
Jeremy has been a journalist for 30 years, 20 of which have been in business-to-business automotive. He was a writer and news editor on AM-sister brand Fleet News for three years before setting up the AM website. For the last five years he has been Bauer B2B’s head of digital helping to manage the digital assets of AM, together with Fleet News, Commercial Fleet, Rail and Smart Transport.
Martin Hughes - Remarketing Manager, Activa Contracts - 06/04/2013 16:31
I concur with Jeremy that low-spec Audis are a struggle to dispose of. On the other hand, A three year-old 3-Series always seems to get to its valuation. But, as always, if it's white, it's alright! I'd like to think I started that trend several years ago when everyone said I was mad to buy that 207GTi in white. On the subject of paint, I'm a great believer of giving a car a mop before entering it for sale, especially black ones.