Van dealers and fleet managers are being given fair warning that resale values and the ongoing maintenance costs for van engines that meet Euro 5 emission requirements may be seriously impacted due to the very nature of the beast.
In order to comply with the Euro 5 emission level limits, many existing larger engines rely on diesel particulate filters. This may lead to issues for some owners whose journies are often ‘stop-start’ by nature. Because the engine doesn’t go through its full cycle under these conditions the particulate filters can become easily clogged.
On the ongoing maintenance side of things, as well as the actual cleaning and off road time that will be experienced, it is unsure how this issue will affect the price of van insurance premiums.
This is because van manufacturers do actually recommend that their vehicles supporting these filters are ran out from time to time to ensure the engine reaches a high enough temperature to purge the carbon particles. If first-time van owners do not do this there is a good chance that any replacements will not be covered under any manufacturer’s warranty. Drivers who think they may be covered under a breakdown ancillary to their base van insurance policy may come in for a nasty shock if they break down, call out the roadside assistance they have with their van insurance provider expecting to be covered but then end up with an invoice when they find they are not.
On the re-sale side of these vans, they are expected to lose any value extremely quickly. For companies that budget for seeing their company vehicles through the entire van life cycle expecting a certain amount of remuneration from the sale of its used commercial vehicles may be put off in investing in them if it threatens their budget too severely.
With the high cost of daily fines being imposed in the LEZ and now, certainly until brand new engines are conceived that will eradicate the particulate filter issue, the foreseeable issues with Euro 5 engines, going green seems to be carrying a very high price tag, at a time when the economy simply cannot support any extra outgoings.
To see how much of a reduction you can command by going greener on your next van insurance quote, choose from our commercial vehicle brokers using our online form.