UK sales of ‘premium upper medium sector’ cars (BMW 3 series, Mercedes C-class, Audi A4, etc.) grew by 24.6% – last year, well over twice total market growth.
Dealer price ‘bible#; Glass’s Guide believes that fleet buyers and company car ‘user-choosers#; have reacted to the chancellor’s new emissions-based company car tax regulations.
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“It also seems that users have become increasingly aspirational and, after years of piloting top of the range Ford Mondeos and Vauxhall (Opel) Vectras, are plumping for cars with more obvious prestige – even if it means settling for a lower overall specification,” Glass#;s said.
Such cars offer higher residual values, making them an attractive proposition for businesses and individuals taking a long-term view of their purchase, the company added in a statement.
Glass’s said that residual values in this sector are particularly strong at present, mostly due to the high demand for the latest generation diesel models with their ‘high tech’ engines that deliver improved performance and economy.
“While the diesel share of the total market for the first three months of the year has grown to 21%, its share of the ‘upper-medium sector’ is no less than 29.6%,” the statement added.
However, the residual performance of vehicles in this sector is increasingly sensitive to specification and mileage.
To maintain a high resale value, a car needs a full service history and the right factory options: alloy wheels, air conditioning, leather trim and, if possible, a communications pack (integrated phone).
“The acceptable mileage for two and three year old cars is also reducing,” said Glass’s specialist car editor, Richard Crosthwaite.
“While 80,000 miles after three years was OK until fairly recently, now even 60,000 is deemed on the high side.
“Of course, ‘it’s an ill wind…#;– those private buyers prepared to settle for high mileage used machines have never had it so good!”
