PREDICTED residual values have suffered a small fall following the launch of Y-registration vehicles, but the drop has been smaller than in recent years. CAP Network is predicting a fall of about £150 in the value of a typical fleet car such as a Ford Mondeo after three years/60,000 miles, but says the adjustment is part of normal seasonal changes.

Ramesh Notra, senior economist at CAP Network, said: 'A 1-2% fall is similar to what we would normally see in Black Book in the after-effects of a registration plate change. It's the effects of greater supply in the market place, with the large number of vehicles registered in March, and more part-exchange vehicles entering the marketplace.'

The movement was confirmed by Glass's Information Services, but Adrian Rushmore, chief car editor, said the fall was smaller than a year ago. 'Used car business has exceeded expectations during the first three months of this year, probably as a result of pent-up demand last year with people deferring their purchases,' he said.