Zenith Provecta reports recession-defying RV performance
The impact of the recession on the used car market saw residual values tumble towards the end of 2008 to unprecedented levels. Yet while CAP Black Book values for three-year-old vehicles fell to 27.7% of their new price in November 2008, Zenith Provecta says that in that same month it achieved a very strong average of 102% of CAP Black Book on its disposals, and the average performance during the 2009 financial year has been in excess of 104% of CAP Black Book.
Mark Phillips, chief financial officer of Zenith Provecta, commented: 'Our recession-defying performance has been largely due to our controlled analysis of the market, multi-channel routes to market and our intelligent routing of the right cars down the right channels, coupled with our drivers taking better care of their vehicles.'
Zenith Provecta also highlights how it has been boosted by such a performance at a time when some players in the fleet funding marketplace have been hit hard by the decline in values compared to pre-recession conditions as well as a downturn in vehicle take-up.
Andrew Cope, Zenith Provecta’s chief executive, said: 'Our position as we look towards an end to the recession has been reinforced by our ability to provide excellent returns on disposals. Our common-sense approach to pricing, which has meant residual values risk has been assessed properly, has enabled the business to limit what otherwise could have been heavy losses during the recession. These factors have been critical in insuring that we can remain in a strong position and invest, grow and develop the business over the upcoming years.'For more of the latest industry news, click here.