Fears expressed over diesel and petrol RVs, says FleetCheck

FleetCheck says its customers are beginning to express residual values (RV) fears over buying new diesel and petrol cars and vans ahead of sales of new models being banned from 2030.

The fleet software company, which helps its client base source vehicles through its sister Fleetfind operation, says that buyers are concerned about the prospects for internal combustion engine (ICE) models.

Andy Kirby, customer success director at FleetCheck, said some customers – especially those that outright purchase – are aware that if they buy a panel van today and operate it for five years, they will be disposing of it in 2026, when 2030 will be in sight.

He explained: “The questions they’re asking are about how much this van might be worth at that point in time? Will ICE RVs be following a similar pattern to now? Of course, there is no easy answer. We have no useful historical precedent for what is happening with vehicle electrification.”

Kirby says that there were a wide range of possible scenarios for ICE residual values in the run-up to 2030 and in the years following.

“We could be looking at a situation in 3-5 years where used buyers are moving into electric cars and vans en masse, meaning there is a slump in diesel and petrol demand or, at the other extreme, that the looming end of diesel and petrol production makes them more sought-after - or at any point in between,” he said.

“There is even a possibility that there are different developments in different parts of the market.

“For example, it’s not impossible that used car buyers overwhelmingly favour electric going forward but that there remains demand for diesel commercial vehicles. The fact is no-one really knows.”

FleetCheck has a customer base of more than 1,300 businesses totalling in excess of 120,000 vehicles using its fleet software solutions.