Fleets expected to delay disposals until impact of WTLP on BIK and VED is confirmed

Time 11:17 am, November 23, 2018

FLEETS are considering putting on hold disposal plans until the government publishes the results of its review into how Worldwide Harmonised Light Vehicle Test Procedure (WLTP) will impact company car tax and vehicle excise duty.

Adesa Remarketing believes businesses are now likely to run existing vehicles longer, resulting in older and higher mileages cars being de-fleeted to the dealer wholesale market in 2019.

Managing director of Adesa Remarketing Jonathan Holland, pictured, 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 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 de-fleeted cars as efficiently as possible to reduce the impact of book drops and achieve the best possible values for fleet customers.

He said: ‘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.’

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Rebecca Chaplin's avatar

Rebecca has been a motoring and business journalist since 2014, previously writing and presenting for titles such as the Press Association, Auto Express and Car Buyer. She has worked in many roles for Car Dealer Magazine’s publisher Blackball Media including head of editorial.

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