It’s no longer good enough to build the best van, it also has to have the right badge
Ken Brown explained, “Unfortunately for manufacturers it is never as simple as just building the best van – you have to have the best brand image to win the residual values war.
“We often see new vehicles from one manufacturer that are every bit as well built as those from a rival – or even superior to the competition – which eventually slip behind on values when they reach the used market.
“The proof that badge brand image is the most important factor influencing what people will pay for a used vehicle is found among what the industry calls ‘badge-engineered’ LCVs.
“These are effectively the same vehicle with identical features and where the only tangible difference is the badge.”
He added, “For example Fiat’s Fiorino light van is also badged by Citroen as the Nemo and by Peugeot as the Bipper. Although prices paid day to day for used examples vary, the long term trend for average trade prices clearly shows that buyers are willing to pay around 7.5% more for a Citroen Nemo than a Peugeot Bipper and 9.5% more than a Fiat Fiorino.
“Whilst there are many similar examples throughout each LCV sector the perhaps the most extreme has to be the Renault’s Kangoo which also carries the highly regarded Mercedes Benz badge on the Citan.
“With a considerable gap between the two badges in the desirability pecking order and whilst there are some subtle differences in design and specification between the two vans, you can expect to pay around 20% more to buy a used Citan than the nearest equivalent Kangoo.”
As this latest round of new LCVs enters the market, it would seem fair that the manufacturers who have paid the greatest attention to design and innovation will reap the greatest rewards, he said. “But unfortunately the law of karma doesn’t apply to LCVs. In reality it’s the manufacturers who have built the strongest brands over an extended period of time that almost always come out on top.”
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