THE phase-out of leaded petrol could bring a recovery in the residual values of ex-fleet cars as demand for vehicles running on unleaded fuel increases. Drivers trading up to a vehicle which runs on unleaded are likely to leap several generations to three-year-old cars, according to Glass's Information Services.

In the February editorial to Glass's Guide, Adrian Rushmore, chief car editor, said: 'We continue to see a concentration of demand at the £5,000/three-year-old mark as customers trade-up from their leaded fuel cars.' However, Mark Norman, editor of CAP Monitor, disagreed. He said: 'The argument is partly right, but is not the only reason for a recovery in residual values.

'Leaded fuel cars are generally pre-1992 with a trade-in value of £500 and the price of a three-year-old equivalent model, say a Ford Mondeo 1.8 LX with 60,000 miles, would be about £5,500. That is a significant jump. Prices improve in the new year as dealers renew buying after holding off before Christmas and that is a cycle that has always been there.'