Smart phone up close at night

Technology choices could spell future woes for used car values


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With in-vehicle technology becoming increasingly important, at least for younger car buyers, could on-board operating systems affect used car values in future?

According to Rupert Pontin, head of valuations at Glass’s, this could be the case further down the line. At the moment, the trend applies to younger, new car buyers. New cars are becoming ever more closely integrated with mobile devices, and personal preference for an iPhone or Android smartphone could soon dictate the car choice of younger buyers, says the valuations firm.

Car manufacturers know that smartphone and tablet technology is integral to the lives of younger car buyers. As such, motor manufacturers are already working with Apple or Google on next-generation systems that integrate with smartphones and tablet devices, offering drivers more access to information and apps such as music, e-mails and sat-nav systems.
These integrated systems, which allow smartphone functions to become a part of the dashboard display and functionality, will augment and replace the same functions in today’s cars, said Pontin.

However, problems arise when manufacturers partner with either Apple’s iOS in the Car or Google’s Android Auto (currently the most popular connectivity systems) – the two are unlikely to be cross-compatible.

Pontin explained: “If you are a car manufacturer that has chosen to go with Android, can you still sell your car to a committed Apple smartphone user? This is something that might make older car buyers roll their eyes but for many people in their late teens and early 20s, it is a genuine issue.”

In future, a situation could arise where a car’s on-board operating system could have a direct effect on its used value, he continued.

Mobile phone “Backing the wrong horse” could not only make models less attractive to a growing group of buyers but could also hit their residual values: manufacturers need to take a universal approach, Pontin added.

Connectivity is part of the changing mindset of younger car buyers who have previously purchased models based on factors such as freedom, glamour and speed as well as price, practicality and convenience, he concluded.


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