Residual values are continuing to rise in four out of the five biggest car markets in Europe

Residual values are continuing to rise in four out of the five biggest car markets in Europe. The downturn seen in the UK post Brexit has gone into full reverse and UK forecasters now seem to have a more positive view of where values will be a year or so after the UK finally exits the EU.

As the largest car market in Europe, Germany is generally a prime target for day registrations (pre-regs). This has been a key driver in new car sales recovery since the economic crisis and this has muted the rate of RV recovery compared to other European markets.

The growing uncertainty over Europe due to the populist political uprising combined with Brexit posturing on both sides is putting negative pressure on consumer confidence which in turn is bearing down on used values.

However, the biggest impact on carbon fuel type RVs over the coming three to five years is the reduction in car ownership in major conurbations, the war on diesel which will see diesel RVs fall by a minimum of 5%-10% over the next 2 years and up to 20% in the next 5 years and the rise in alternative powertrains like Electric Vehicles “EVs” and hybrids.

* By Dean Bowkett and ExpertEye. For more information, please contact ExpertEye, www.experteye.com