Fleets to run vehicles for longer until WLTP uncertainty is cleared up

Fleets are considering delaying disposal of their vehicles until the uncertainty surrounding WLTP is cleared up, says ADESA Remarketing.

The Government is due to publish its review of how the new WLTP ratings will impact company car benefit-in-kind tax and vehicle excise duty in spring.

ADESA Remarketing believes businesses are now likely to run existing cars lonoger, resulting in older and higher mileage vehicles being defleeted in 2019.

Jonathan Holland, managing director of Adesa Remarketing, said: “Fleets are faced with the prospect of being unable to make informed decisions on sourcing new vehicles until the government concludes its review in the spring.

“This means many businesses who had extended vehicle life cycles, as a result of the introduction of WLTP in September, will look to extend them even further.

“Next year we can expect to see an influx of de-fleeted cars outside the traditional three-years/60,000 miles profile entering the wholesale sector and that could have an impact on desirability and values.”

Holland said the challenge facing the sector will be to remarket these defleeted cars as efficiently as possible to achieve the best possible values for fleet customers.

He added: “With older stock, the need for transparent vehicle descriptions is even greater than usual, as well as the ability to remarket the cars as soon as they become available through specialist upstream remarketing channels.

“Dealers across the country are waiting to replenish their forecourt stock with de-fleets, so accurate descriptions and speed to market will ensure better results through sales proceeds and decreased days to sale.”