Big 4x4s 'can offer great value'

4:35pm Monday 14th July 2008

INCREASING fuel prices, green issues, and fears of even heftier road tax costs in future has led to a rash of For Sale signs appearing on big off-roaders all over Britain.

With most of these private sales, and a good few flooding into trade showrooms as part-exchange models, is it a good time to buy a 4x4?

Tim Naylor, spokesman for British Car Auctions (BCA), said the 4x4 sector was feeling the pinch on prices more than most.

"These big vehicles have been under attack from a number of quarters in the past 12 months, with Vehicle Excise Duty (VED) increases, the dual effects of the credit crunch and rising fuel costs, and even, for some owners, increased London congestion charges. Surprisingly, then, values in this sector seem to be holding up well.

Concentrating on the bigger 4x4s such as the Land Rover Discovery, Range Rover, BMW X5 and Jeep Grand Cherokee, prices were firm in January, but declined in February - this was possibly linked to crude oil reaching 100 dollars a barrel and general concerns over fuel prices. Values remained relatively static in March before rising to a high point in May, he said.

Mr Naylor said "simple demand" was the cause, as the market for larger 4x4s was driven by need rather than fashion.

"Generally, if used buyers are investing in a Land Rover or Range Rover, they are looking for a vehicle to do a job.

"They want pulling power for a caravan, horse box, or trailer, or they work or live in a rural location.

"With the first major slug of depreciation borne by the first owner, some of these bigger 4x4s can look spectacular value at just three years old and 60,000 miles," he said.

"However, volumes of 4x4s are relatively thin in the marketplace, and demand is always high for the best examples - hence average prices are stronger than you might expect." So what should buyers look for?

Specification is important and alloys, leather, aircon and increasingly sat-nav are favoured in the used market, Mr Naylor said. "Performance and torque could be an issue, and diesels are generally favoured. Colour is important, but generally anything that looks sober, without being too utilitarian is okay. And make sure the spare wheel is in place, particularly if it is exterior-mounted on the rear-hatch." A comprehensive up-to-date service history is also essential.

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