Legal Brief
Right Spec Plus Right Care Equals Good Residuals
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For most self-employed tradesmen running a single van or companies with just a handful, the main concern when buying a new vehicle is the initial purchase price. But there’s another figure that is critically important – residual value.
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Differences in the value of second hand vans vary enormously even between models of the same age and specification and with today’s intense competition and falling sales in the second hand market, independent experts agree that it’s more important than ever to consider all the options for your vehicles.
The CAP Guide’s Assistant Forecast Manager - Commercial Vehicles, Mark Cowdell remarked: “We find that driver comfort is an important area to consider when specifying the vehicle. Air conditioning is increasingly popular and brings around £350 at 3 years, although the downside is that it can increase fuel consumption. An electric pack (mirrors/windows) enhances driver comfort and adds around £75 extra to the vehicle at 3 years.
“Colour is always an important factor to consider, while corporate livery is a great advertising tool, values can be lower at disposal time if the colour scheme is deemed outside the norm. Metallic paint in the right colour can also bring a premium of around £300 at 3 years, however there is a crossover point when damage to the vehicle becomes more expensive to repair than one in a solid colour,” says Mr Cowdell.
“Condition is definitely one of the most important aspects when valuing a commercial vehicle. The CAP benchmark of average condition gives a negative value for anything deemed poor and a positive for clean vehicles. A good clean van with the right options in the right colour could enhance the end value quite significantly and help reduce disposal time”, concluded the CAP expert.
So if you want to be at the higher end of the residual value ladder when you come to sell your vehicle, Vauxhall Commercial Vehicles say that there are two key things to consider:
Vauxhall also offers a variety of factory-bodied vehicles. These bodies and conversions are to the same high standard as the chassis or panel van on which they’re based. Such consistency in quality means that they’re likely to hold their value better than a body fitted by a third party. They also come with the same three year warranty as the base vehicle. Body types range from Lutons to dropsides, tippers, and minibuses.
Think too about safety features contained within the basic specification, such as whether there’s a passenger air bag. And look at options like air conditioning that not only make life more comfortable when you’re at the wheel but can add value when you come to sell.
Ply-lining your van can also help protect the interior and contribute to a higher residual value. This is easily arranged through any of Vauxhall’s network of over 300 retailers. And security devices, such as central locking and engine immobilisers – standard on Vauxhall vans – can also add sales appeal, especially as they can contribute to lower insurance premiums.
Finally, and most importantly, is to take care of your van during the time that you run it. Vehicles with a fully documented service history will always command a better price. Vauxhall’s Commercial Vehicle Retailer network will only ever use bona fide parts when carrying out servicing or repair work and this will ensure good performance for you and help protect your resale value.
The CAP Guide’s Assistant Forecast Manager - Commercial Vehicles, Mark Cowdell remarked: “We find that driver comfort is an important area to consider when specifying the vehicle. Air conditioning is increasingly popular and brings around £350 at 3 years, although the downside is that it can increase fuel consumption. An electric pack (mirrors/windows) enhances driver comfort and adds around £75 extra to the vehicle at 3 years.
“Colour is always an important factor to consider, while corporate livery is a great advertising tool, values can be lower at disposal time if the colour scheme is deemed outside the norm. Metallic paint in the right colour can also bring a premium of around £300 at 3 years, however there is a crossover point when damage to the vehicle becomes more expensive to repair than one in a solid colour,” says Mr Cowdell.
“Condition is definitely one of the most important aspects when valuing a commercial vehicle. The CAP benchmark of average condition gives a negative value for anything deemed poor and a positive for clean vehicles. A good clean van with the right options in the right colour could enhance the end value quite significantly and help reduce disposal time”, concluded the CAP expert.
So if you want to be at the higher end of the residual value ladder when you come to sell your vehicle, Vauxhall Commercial Vehicles say that there are two key things to consider:
- Future-proofing the value by getting the specification right from the outset
- Regular servicing in line with the manufacturer’s recommendations
Vauxhall also offers a variety of factory-bodied vehicles. These bodies and conversions are to the same high standard as the chassis or panel van on which they’re based. Such consistency in quality means that they’re likely to hold their value better than a body fitted by a third party. They also come with the same three year warranty as the base vehicle. Body types range from Lutons to dropsides, tippers, and minibuses.
Think too about safety features contained within the basic specification, such as whether there’s a passenger air bag. And look at options like air conditioning that not only make life more comfortable when you’re at the wheel but can add value when you come to sell.
Ply-lining your van can also help protect the interior and contribute to a higher residual value. This is easily arranged through any of Vauxhall’s network of over 300 retailers. And security devices, such as central locking and engine immobilisers – standard on Vauxhall vans – can also add sales appeal, especially as they can contribute to lower insurance premiums.
Finally, and most importantly, is to take care of your van during the time that you run it. Vehicles with a fully documented service history will always command a better price. Vauxhall’s Commercial Vehicle Retailer network will only ever use bona fide parts when carrying out servicing or repair work and this will ensure good performance for you and help protect your resale value.
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