Good news for ‘Mondeo man’ – Eurotaxglass’s forecasts improved residual values

The residual value of the all-new Ford Mondeo, due to arrive in UK showrooms from June, will be significantly higher than that of the outgoing model, and will even outperform those of some of the new car’s key rivals. According to EurotaxGlass’s, the new £18,197 five-door Mondeo 2.0 TDCi (140ps) Zetec is forecast to retain 35 per cent (£6,300) of its purchase price as a trade value after three years and 60,000 miles, compared to 29 per cent (£5,450) for the current model five-door Mondeo 2.0TDCi (130bhp) Zetec which comes with a higher list price (£18,497).

The news is even better for the estate version of the car. The Mondeo 2.0TDCi (140bhp) Zetec Estate has a list price of £19,447, and after three years and 60,000 miles, EurotaxGlass’s forecasts a trade value for the car of £7,000 (36 per cent retained value).

The forecast for the five-door variant compares favourably with that of many of the new Mondeo’s key competitors in the volume-brand upper-medium segment. Over the same three-year / 60,000 mile period, EurotaxGlass’s is predicting lower trade values for the Toyota Avensis 2.2 D4-D (150ps) T3-X five-door (34 per cent), Vauxhall Vectra 1.9CDTi (150ps) SRI five-door (31 per cent) and Saab 9-3 1.9TiD (120ps) Linear four-door (30 per cent). However, the new Mondeo will continue to trail its rival from Volkswagen – the Passat 2.0 TDi (140ps) SE four-door is expected to be worth 38 per cent of its list price in three years’ time.

"The Mondeo has never really been an emotional purchase – more often than not it has been the traditional mainstay of fleets which has merely satisfied a need for transport rather than become a status symbol in the company car park," comments Jason King, Forecasting Editor at EurotaxGlass’s. "However, with the new car a premium feel is far more evident inside and out, injecting a much needed shot of desirability into the Mondeo name."

"The materials and build quality in the cabin would not be out of place in a product from either of the Ford-owned Jaguar or Volvo brands. The standard specification now includes items such as ESP, cruise control and a trip computer, and confirms that buyers of D-sector cars in the UK demand the highest equipment levels of any market in Europe," adds King.

Although niche-segment vehicles such as MPVs and SUVs have taken sales away from the D-segment, it still accounted for over 14 per cent of all new cars sold last year, with around 40 per cent of the segment’s sales going to the premium brands. "While Ford executives are under no illusions that the new Mondeo will be seen as a competitor for the Audi A4 or BMW 3-Series, it can certainly be considered as a real alternative to the best ‘sub-premium’ brand offerings, including the VW Passat."

King suggests the Mondeo’s improved design, quality and competitive pricing will continue to aid residual values in the longer-term, as will Ford’s promised reduction in overall volumes entering the used car market in bulk via rental fleets. He concludes, "Not only should it achieve Ford’s intended aim of halting the defection of current customers to other brands, but it may also mean the image of ‘Mondeo Man’ comes to be seen in an entirely different light."