effects of RV crunch
Hybrid electric or LPG vehicles in the fleet and lease sector
are growing in popularity thanks to the credit crunch and rising
fuel costs, a BCA report has found.
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In the auction house’s examination of the relative price of
petrol, diesel and alternative powered cars, it found that values
for LPG have consistently outperformed guide prices, often by a
considerable margin. A slow-down in April where values fell
slightly below the 100 per cent mark against CAP Clean benchmark
figures was followed by a growth to 115 per cent in June.
Price performance of the fuel types versus CAP Clean suggests
growing demand for alternative sources of power, despite the
vehicles generally being older and having higher mileage at the
time of sale. An already-high demand for LPG cars is expected to
grow, meaning that their relative scarcity at auction is keeping
values far higher than the market norm.
BCA communications director Tony Gannon said: “There can be little
doubt this is being driven by the credit crunch and rising fuel
prices which are persuading more motorists to try LPG or hybrid
electric, perhaps for the first time.”
Nancy Smallwood
