Is the manner in which the coach industry procures vehicles about to change?
Indications are that it may be. Concerns about Clean Air Zones and a likely long-term mandate for zero-emission capability in some cities mean that it may become increasingly difficult to make a judgment on a vehicle’s resale value in later life.
We’re already seeing similar uncertainty with Euro 5 coaches. They litter the used market. The reason why is simple: Where will they fit into fleets of the future that are subject to air quality legislation?
The fact that coaches are responsible only for a tiny proportion of the pollutants that emission control zones aim to tackle is irrelevant.
The mainstream media’s demonisation of ‘dirty diesel’ – and the assistance provided by a major German car manufacturer – mean that it is in the crosshairs, and will remain so.
That’s why an increasing number of operators and dealers alike are talking about leasing. It’s been common in the London bus market for many years, but leasing has so far accounted for only a small proportion of coaches delivered.
Leasing is not a magic solution to unpredictability in both the market and the industry in general. Leasing companies, like any business, are out to make a shilling. A vehicle’s potential value at the end of the lease is factored into the payments an operator will make.
But what it gives is a welcome element of certainty. To grossly over-simplify, at the end of the lease the coach is returned to the leasing company and rehoming it is someone else’s problem. That may be a valuable thing if you’re staring down the barrel of a zero-emission zone.
