2023-04-06 07:00:00
Residual value is not necessarily one of the nice-sounding neologisms in the German language and somehow seems just as sympathetic as “minimum durability”, and yet the value development plays an important role when buying or leasing a new car. After all, the customer wants to know how much of the former new value is left at the end.
The residual value plays an important role, especially in leasing and financing, and also determines the monthly rate. But how these figures are determined is not always easy to understand. Residual value studies are prepared by Deutsche Automobil Treuhand AT, among others.
“Before a new vehicle comes onto the market, the organization receives all the important information from us and we invite the evaluators to examine and drive prototypes. Before the start of sales, all the information is available, also in comparison to the predecessor model and the competition, and the experts make their forecast,” explains Jan Rasmussen, residual value manager at Hyundai Motors Germany. “If the market conditions change, the forecast is checked and adjusted if necessary.” Because in addition to the objectively determinable factors, economic development, inflation, consumer climate, market trends and political interventions such as diesel driving bans and availability also play a role.
The electric models are now also analyzed for their performance using this method. However, specific properties such as range, loading capacity and speed and the costs of the vehicles are included in the assessment.
It’s not only worth looking at the resale value when it comes to financing or leasing, because when it comes to trade-ins, the DAT list also plays a decisive role for the dealer in determining how much the used vehicle is worth to him.
When determining the residual value, not only the “hard facts” but also the reputation of the brand plays a role. “The image is a major residual value driver. Brand development is closely related to residual value, and Hyundai has achieved great growth there in recent years. Compared to 2010, twice as many people now know the Hyundai brand,” explains Rasmussen. The partnership with the Bundesliga soccer club Eintracht Frankfurt and German amateur sports certainly helped. And the choice of the Ioniq 6 as “World Car of the Year 2023” should also contribute to this.
But the product range also influences the brand image, and “this also includes the award-winning design of our vehicles, the five-year unlimited mileage guarantee and the strong dealer network,” says Jürgen Keller, Managing Director of Hyundai Motor Germany.
Part of Hyundai’s strategy includes reduced discounting behavior and a significantly higher proportion of private customers compared to the competition, as well as a manageable fleet business. The brand relies on smaller fleets of one to nine vehicles, which account for 58 percent of fleet business.
These three focal points ensure price stability in the model series. In addition, Hyundai is active in almost all classes and started early in the SUV growth segment, where particularly high and stable residual values are achieved. (aum/ww)
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