Drivers who don’t strictly adhere to manufacturer service intervals are impacting residual values, according to Liquid Fleet.

The vehicle procurement and fleet management business said it’s being hit by reduced residual values on lease and rental cars not serviced to strict OEM service intervals.

And it’s warned that it’s now clamping down on drivers who are not vigilant at strictly following the manufacturers’ service intervals.

This impacts on RVs due to dealers not wanting to purchase the vehicles at the end of contract as they claim the OEM warranty has been invalidated.

Liquid Fleet’s commercial director Martin Potter says it’s a problem that’s becoming more and more commonplace.

“The issue applies particularly to 12- and 24-month-old cars where the manufacturer’s servicing guidelines haven’t been followed to the tee. Franchised dealers either turn their back on these used cars, or offer us a price way below market value because they claim the car’s warranty is compromised. This is potentially costing us between £500-£1,000 per car in lost residual values at disposal time,”

The issue is even extending to parts and oil. There have been situations where a customer doesn’t use a main franchised dealer during their life with the car, and the correct parts and oils recommended by the manufacturer haven’t been used.

“Unless the customer can prove to us on their service invoices that they have used the correct parts, oil and filters, a franchised dealer will also avoid the car, as it is seen as technically out of warranty. All these technicalities are causing us huge operational issues as it means we must opt for a different disposal strategy for these nearly new cars”

Martin Potter | Commercial Director – Liquid Fleet