What affects LCV and car residual values?
Vehicles depreciate in value at different levels. So what are the major influences on used car and LCV pricing?
LCV and car residual values
Location matters: for example, while RVs might be struggling in the UK with high volumes of used cars, they could be up in Italy and France. While in Germany, fuel type demand in the used market may be proving more resistant to change than other locations across Europe.
Demand for different fuel types has and will continue to fluctuate over time as legislation and retail demand changes. Today, with alternative fuel vehicles in the news, consumer attitudes are transforming at different rates in each European market.
Combinations of distance driven and age of vehicle have varying impacts on a vehicle’s RV.
Brand and model
BMW and Volkswagen battle for the largest share of the used car market in Spain, while it’s Renault and Peugeot in France. Past model performance can help identify trends.
Segment and body type
SUV, large family car, supermini, small family car: car segment affects a vehicle type’s share of the used car market. And body type – hatchback, estate – makes a difference too.
EV incentives and diesel penalties, WLTP, falling sales of new cars, the rise of mobility-as-a-service – all of these impact RVs. Understanding the landscape, not just the car, is vital in managing your financial risk.