The results of recently completed survey by Experteye paint a dreary picture for the residual market values across Europe. According to the report, forecast residual values continue to fall across Europe with Portugal seeing the most dramatic drop, with a -10 percent reduction in the last 12 months.
The figures from the Experteye European Leasing index show a downturn in all of the six nations surveyed, with Spain reporting a -3.2 percent decline, Italy -2 percent, the UK -1.9 percent, Germany -0.6 percent, and France -0.1 percent.
With little sign of improvement in the latest quarter, only the UK is showing a slight upward trend with a +0.8 percent improvement in its forecasts since November 2012, according to the report. All other countries, however, remain downbeat with Portugal reporting a -4.7 percent quarterly fall, Spain -1.3 percent, France -0.9 percent, Germany -0.8 percent, and Italy -0.2 percent.
Even with the poor residual values, fleet customers appear not to be suffering. In all nations, rentals in the last 12 months have either fallen or remained static. French fleet operators have witnessed a -2.7 percent reduction in lease rates, the UK -1.3 percent, Germany -1.2 percent, Italy -1.0 percent and Spain -0.1 percent. There has been no change to average rental rates in Portugal.
The Experteye survey tracked forecasted residual values (RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies.
With continued concerns regarding the economy, there have also been some strong upward shifts in budgeted servicing, maintenance and repair costs, although not all countries have increased their prices during the last year, according to the report. At one extreme Spain has brought its SMR costs down by -6.9 percent, whereas at the other end of the scale Portugal’s have risen by +8.7 percent.