Reduced CO2 vehicles move onto the second hand car market
New sub-100g/km cars are selling increasingly well. But will that rise in demand continue onto the second hand vehicle market? Let’s look into it.
What are the advantages of reduced-emission vehicles for businesses and consumers?
European has set CO2-targets that car manufactures have to live by. This is why almost all car makers have developed strategies for reducing emissions. But consumers and businesses are also wising up to the benefits of reduced-emission cars.
Businesses are always looking for ways to limit operating costs as much as they can without having to compromise on service levels. And that is where sub-100g/km vehicles come into the fleet! Fleet managers are putting the focus on whole-life cost and value for money and they realize how interesting low-CO2 cars can be for their fleets. Think tax-advantages.
Off course, We can’t ignore external factors like natural disasters, war and civil unrest. Each of these have helped increase oil prices significantly. The effect of these factors can’t be underestimated as a cause offuel-efficient vehicles demand shooting up.
Sub-100g/km vehicles on the second hand car market
Reduced-emission vehicles have only recently started appearing on the second hand car market. But we still don’t see high numbers of hybrids, electric cars and reduced-emission vehicles on second hand vehicle marketplaces. That is why it would be difficult to make an accurate prediction on the success low-emission, high-mpg vehicles will have in the future.
At the moment, the reduced-emission cars supply mainly exists out of petrol-electric hybrids, super-minis and the latest generation of fuel-efficient small hatchbacks. Because they are so scarce, availability and prices are the major issues for car buyers right now.
Car choices are limited because the majority of cars have a similar body shape. Moreover, the majority of second hand cars are retail rather than fleet models and tend not to surface in a wholesale car auction.
Fleet numbers, however, will eventually start growing, which will help fight the high auction prices, which currently often outweigh the benefits from reduced motoring costs. Make and model, mileage, condition, desirability and presentation, on the other hand, will always be critical issues as far as pricing and demand is concerned.
Can reduced-emission cars be a remarketing success?
Whether or not it is worth to take up sub-100g/km cars in a fleet for their remarketing value, is hard to tell. We could expect that this type of pre-owned cars will remain a niche-interest sector in the short-term. But if motoring costs keep climbing and the low-CO2 second hand vehicles remain tax-friendly then demand could increase strongly. But it is more likely that fleet managers will be driven towards these cars by tax advantages rather than their remarketing value.