Keeping vehicles for longer is good for residuals, says NAMA

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According to NAMA, fleets of all sizes could see a positive impact on their residual values by extending the duration of their contracts.

Recent research by the Corporate Vehicle Observatory suggests that while confidence of fleet operators is on the increase, their overall expectation is that they will run both cars and LCVs for longer.

Another influencing factor of fleet’s residuals will be the sustained growth in alternative fuelled vehicles, notably hybrids, which feature in 38% of larger fleets, said NAMA.

Louise Wallis, head of business development at NAMA, said: “The level of hybrid activity is on the rise at our member auctions and there is strong buyer interest in such vehicles and it is a trend that will gain increasing impetus.

“Again, we do not see this switch in vehicle type as having a seismic impact in RVs.

“Momentum will happen over an extended period and even when supported by more EVs, which largely have a novelty value at auction right now, are likely to change the market dynamics gently.”

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