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Fleets to defer vehicle disposal until spring 2019

Jonathan Holland, managing director of Adesa Remarketing

Fleets will continue to delay disposal of their vehicles until next spring as many await an end to the emissions taxation uncertainty surrounding WLTP, ADESA Remarketing has said.

The Government is due to publish its review of how the new Worldwide Harmonised Light Vehicle Test Procedure (WLTP) ratings will impact company car benefit-in-kind tax and vehicle excise duty in the spring and Jonathan Holland, managing director of Adesa Remarketing, believes that many fleets are awaiting the outcome of those changes before de-fleeting vehicles.

For used car dealers battling to achieve a margin, the uncertainty – combined with the shortage of trade-in stock triggered by the new car shortages resulting from the introduction of the WLTP, in September – is likely to mean that the market’s high wholesale prices are set to continue.

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.”

Holland said the challenge facing the sector will be to remarket these de-fleeted cars as efficiently as possible to achieve the best possible values for fleet customers.

He added: “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.

“Dealers across the country are waiting to replenish their forecourt stock with de-fleets, so accurate descriptions and speed to market will ensure better results through sales proceeds and decreased days to sale.”

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