EU emissions target for vans to impact on RVs, says Shoreham Vehicles
So says Shoreham Vehicle Auctions’ managing director Alex Wright, who adds that leasing and rental firms and outright-purchase fleets need to factor this into their RVs in the future for vans.
He said: 'Those underwriting future residual values will have to treat future price predictions with caution as residuals are likely to fall on both the older and newer vans alike, even before the proposals are introduced. While the "green" low CO2 vans may tick all the right boxes in Governmental circles, demand in the used market may not be as high because used buyers such as SMEs don’t have the credit rating to secure enough finance to purchase. Franchised dealers may have to find a new buyer for this type of van.
'Vans with emissions higher than 147g/km over a three or four year period may well be worth less as the operating costs are likely to rise quite dramatically,' added Wright.
He added that he believes that the used vehicle market will end up with a two-tier system that will see sub-147g/km vans being stocked predominantly by franchised dealers, with prices well out of the reach of most SME used van buyers.
'Vehicles with emissions above 147g/km will instantly see residuals fall and overall running costs, such as Vehicle Excise Duty increase,' said Wright.
And he fears the moves to reduce emissions will eventually end up as a tax on SMEs.
'My fear is that by taxing the higher-emission vans, SMEs will be faced with much higher costs if they want to buy and run a younger vehicle. That could dramatically weaken the demand for used vans three years before the proposals are introduced which will impact the entire market,' he said.
Along with the change to the Low Emission Zone in London, this could impact on SMEs' future buying habits: 'What you might have is SMEs buying estate cars or hatchbacks to undertake general deliveries. Rather than face higher used prices for second-hand vans, paying an LEZ charge and risking a £500 fine if their vehicle does not meet strict emission criteria, running a non-LEZ exempt car which only incurs a Congestion Charge could be a sensible way forward.
'Health and Safety issues around loads being unsecured in cars could also cause problems for employers who have to meet their Duty of Care responsibilities,” said Wright.
'An estate car can carry out the deliveries in the week and double up as a family car at weekends, without any of the potential issues described which could be seen as a major benefit from SME owners,' concluded Wright.