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One learner owner
As you are the owner of a FIAT 500, what are your views on the effect on resale values of FIAT 500s in the future now that we are seeing flocks of them on the road with BSM emblazoned large across the bonnet roof and doors? FIAT thinks there will be no effect? Once a rare sight around muggy Kingston, I have seen many now with the BSM logo, and very few privately owned ones. I know that learners tend to buy the cars they 'pass out in' but surely the 500 is 'niche' and this could have an “Oh you've just bought one of those driving school cars then?” response. 500s could lose their cute and cuddly rareness? AND will you get a service appointment with so many coming in for an annual service - and Fiat dealers still getting the wooden spoon for customer service? (Sour grapes. I should have bought one too, but went and bought something else.)
Asked on 14 November 2009 by
Answered by
Honest John
FIAT's sales director, Andrew Sprosten, asserted that BSM is obtaining "no discount" on the FIAT 500s being sold to it. And, because the cars cannot legally be bought back from BSM by FIAT on favourable terms, FIAT will be paying "full CAP Trade Price" for them when they come off the BSM fleet for re-sale by FIAT dealers. BSM will not be paying "list price" for the cars because they have to be pre-fitted with dual controls, which will then be removed before the cars are re-sold. And of course, because these are 'VAT qualifying cars', there will be a small benefit from reclaiming the input VAT, then charging and repaying VAT on a smaller amount on disposal. The way the deal is structured, it should not detrimentally affect residual values of FIAT 500s generally, other than by the volume of used 500s it makes available against demand for them, which itself will affect the CAP Trade Price. The £500 discount on 500s being offered to young drivers who have learned to drive with BSM is actually less than the £2,000 discount currently being obtained by private buyers using the scrappage scheme. But to avoid possible drivetrain trouble I think buyers of used 500s will prefer to find a private owner’s name on the V5C rather than an organisation that might have been fronting for BSM.
Dear Honest John,
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