Experts Predict Lifecycle effect on LCV Values
The lifecycle effect has long had an impact on the resale values that automobiles have experienced. It’s all about a sense of fashion, as changes in styles have long exerted an effect on the public’s demand for updated versions with new looks and features. Though this has never crossed over into preferences for vans, CAP Automotive is indicating that a change may be coming.
According to van price forecasting expert Tim Cattlin, “We are familiar with how car manufacturers refresh their models by introducing “facelifts” or all-new replacements with increasing regularity. This has led to a constant race between manufacturers to have the freshest product in the market, while many light commercial vehicle models have evolved very much more slowly. But the days of the van being seen as purely a tool to get a job done are clearly ending and the signs are strongest in the one tonne panel van market.”
Cattlin says that previously, the only light commercial vehicle that was seen as being subject to changing tastes has been the 4x4 lifestyle vehicle, which is also viewed as a family vehicle, but that the lifecycle effect may soon overtake the van market as well. “The days when a van was solely regarded as a work tool are certainly coming to an end. In the end, the creep of vanity into the van market is a mixed blessing. It ensures a more dynamic marketplace, with exciting and fresh offerings appearing with increasing regularity.” He points to the example set by Ford in offering fresh design options. “Ford has spent the first 18 months of the life of the Transit Custom successfully cultivating the “artisan” retail smaller business sector. Looking at registration statistics there has been a high proportion of “Trend” and “Limited models, with relatively high specification, sold.”