There has been much debate about the potential residual value of Euro 6 trucks compared to the previous Euro 5 models. As yet few Euro 6 commercial vehicles have been released to the used market and therefore this is a discussion which will probably continue to flourish for a while. If you want to see on which side of the fence some of the leading figures in the industry fall, you can take a look at this detail expert roundup on Euro 5 and 6 models.
It seems that currently both Euro 5 and Euro 6 truck models are pretty close in their ability to retain residual value. However, Euro 6 may just be showing an advantage for the following reasons.
At the beginning of January 2014 new regulations came into force in European Union member states demanding that all newly registered heavy duty diesel engines had to reduce their hydrocarbon, nitrous oxide and particulate emissions.
Besides this required reduction in emissions, there were also stricter rules introduced about the on-board diagnostics on trucks. This is to ensure they work efficiently and the data they supply is correct. There were also a range of other stipulations put in place including how vehicle emissions would be certified.
Therefore, by purchasing a Euro 6 truck you are future-proofing your investment as regulations concerning emissions will only get tighter going forward. While there was a small question mark over the reliability of early models this has now all but disappeared and the subsequent improvement in fuel efficiency has made them more attractive.
However, that said, the technology required to achieve these lower emissions has pushed the boundaries and there is no doubt these trucks will need a high level of skilled maintenance to keep them within the emission levels going forward. The diagnostic tools will also need to be closely monitored. While this should be factored in when future running costs are considered, it is not thought likely that it will greatly affect residual value.
It was feared that because of the need to lower emissions this might have led to decreased fuel efficiency. However, due to advancements in technology this has not turned out to be the case and the Euro 6 trucks are in fact more fuel efficient than their predecessors. Because the price of fuel remains high, this fuel efficiency should improve the residual value of Euro 6 trucks over the long term. Any fuel saving is seen as an asset in the current competitive commercial market.
We are all much more aware of environmental issues these days and any commercial enterprise needs to keep their eco-friendly credentials in mind when it comes to marketing their services. Therefore, use of vehicles which are more environmentally friendly, such as the Euro 6 model trucks, can be used as a selling point to clients who are also looking to reduce their carbon footprint.
The Design Advantage
Although there isn’t a vast gulf between the residual value of Euro 5 and Euro 6 as yet, the later models should come out slightly ahead simply because they had a higher cost at purchase and have had other changes made to them. In addition to the emission reductions and improvements in fuel efficiency that have been made, many manufacturers have also taken the opportunity to redesign the overall look of the trucks and further enhancements have been made to the cabs.
The jury is still out as to whether it will be Euro 5 or Euro 6 trucks which hold their residual value better. However, there seems to be a definite leaning towards the later models. This is unsurprising when improvements in vehicle technology are being made all the time, especially where emissions, cleaner engines and fuel efficiency are concerned. With this in mind, it is likely that someone in the market for a used vehicle will probably opt for a truck which has the greatest long term potential and adheres to ever tightening European regulations.
*Written by James Timpson:
“Hi, I’m James and I hold a big interest in the automotive field, especially with trucks. I have been writing in the industry for many years and I try and engage with my readers as much as possible.”