There are a number of issues affecting higher-emission vehicles
from whole life and running costs to increased VED and showroom
taxes. However, perhaps the key issue currently affecting the used
market is information for the consumer – or rather a lack of it.
The average motorist is unlikely to have fully grasped the nuances
of the new VED system and may just come to the conclusion that each
and every ’large’ car is subject to a higher tax regime. This could
have a negative effect on values of all larger cars out in the real
world – whether they exceed the 225 g/km limit or not, in a market
sector where there has been pressure for some time.

On the plus side, as used buyers will not be affected by any
initial show room tax, these vehicles will potentially seem even
better value in the used market. The first owner will carry more of
the depreciation, as the up-front tax is effectively
non-recoverable.

While increased VED will mean higher running costs, these
vehicles are already expensive to run and anyone wanting to buy one
is likely to have factored those costs in. When VED was increased
last year for the least fuel-efficient vehicles there was little or
no impact on used values, beyond a short-term blip.

Don’t overvalue these vehicles as they will become increasingly
price sensitive – they may be good value, but at the top end of the
range they still represent a considerable investment for the used
buyer. However, at three years and 60,000 miles, a well maintained
MPV/4×4 from the one company owner, complete with a fully-stamped
service history and with a good specification is an appealing
combination.

In short, anyone in an off-set tax position can find great value
in this sector. Outside of the business sectors, financially secure
older buyers like the quiet elegance of the bigger BMWs, Mercedes
or Jaguars. As for the big 4x4s, Caravan Club members are big fans
as are those working or living in rural areas.

The fleet operator selling these bigger, thirstier vehicles
should be aware that buyers will look closely at service intervals
and mileage, and if a car is being offered needing a major service
very soon, this can be a real turn-off. It could well be worth
getting the work done in advance and getting this declared when the
car is sold. Ask your remarketing partner to carry out an
independent engineer’s report on the car to boost buyer confidence.
Similarly, make sure the car is offered with a long MOT.

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A great specification is expected, so the cabin should sport a
leather interior, climate control and an array of gadgets, while
the exterior should have a quality metallic paint finish, with
alloy wheels and maybe low-profile tyres. On the bigger 4x4s,
torque and pulling power come into play.