22/05/2008

Lowest residual values of any sector translate into falling sales

As buyers look elsewhere, volume manufacturers such as Vauxhall are set to withdraw from the sector

Large cars produced by non-premium manufacturers have experienced the lowest residual values of any sector in the last decade.

Sales of such vehicles have declined by 82 per cent in the last seven years and only accounted for 0.4 per cent of total registrations in 2007. Slow activity has also been reflected in consistently low trading prices on the second-hand market.

The reason for the decline in sales could be that consumers looking to buy a large saloon are much more inclined to purchase an executive model from a luxury manufacturer as opposed to a vehicle from a volume brand.

Car makers which successfully produce high volumes of smaller, mainstream models have struggled over recent years to market their larger offerings with the same exclusivity as Mercedes-Benz, BMW and Jaguar, for example.

In 2000, the Vauxhall Omega was the one remaining volume seller but the 10,800 units sold that year accounted for more than four times the number registered by all manufacturers in 2007. Furthermore, production of last year's best-seller, the Vauxhall Signum, is also due to end soon and the model will not be replaced.