Volkswagen’s Transporter range is something of an institution. It’s not just a van — it’s a motorhome, utility vehicle and even an accomplished off-roader — and for some it’s part of a lifestyle.

The latter sentiment is true, judging from the popularity of the Caravelle variant. Depending on how you specify the vehicle, it can be a mobile alternative to sleeping under canvas, or a more luxurious affair — depending on the depth of your wallet and creative nous.

What is clear, though, is that Volkswagen’s big bus is anything but a people carrier in the same vein as the likes of Ford’s Galaxy or Chrysler’s Grand Voyager.

Built to much higher standards, it offers the discerning buyer something a little different.

Granted, there’s the commercial angle to consider. As a plain van the big VW is more refined than most rivals. This is an often forgotten attribute that sets up the Caravelle for a better than average life on the road.

Build a flimsy, cheap-looking van and the people mover version will struggle — noise, refinement, road manners — will all lag behind even the flakiest of MPVs.

Not so the Caravelle, which boasts a level of build quality and refinement equal to any modern car.

And just for good measure the Caravelle even looks like a regular Volkswagen. Like an increasing number of its passenger car relatives, it now displays the corporate family nose.

There are also changes to the rear lights and mirrors, while much work has been done to improve refinement and quality inside the vehicle.

To this end, the various cabin materials are more car-like in touch and appearance, while cabin ergonomics and safety values have been brought into line with that of a car.

In the case of the Caravelle, you can have a cabin full of plush seats and a car-like driving position, albeit slightly higher off the ground.

On the move the mighty VW is no more taxing to drive than a Passat. Light and accurate steering, plus a surprisingly well-damped ride puts the Caravelle head and shoulders above the other van-based competition.

After a few miles of mixed roads — motorways, urban streets, winding country roads — it’s easy to see why the Caravelle is popular with the executive hire community.

If you are transporting customers used to the better things in life, nothing comes close to the Volkswagen’s business class levels of comfort.

It’s pretty good up front for the driver, too. New for 2010 are a pair of improved diesel engines and a seven-speed dual clutch gearbox.

With the Transporter’s much-loved five-cylinder unit now gone, the new four-pot units in single turbo 140 and twin turbo 180 horsepower trim deliver a more efficient and economical performance.

In real terms the less powerful motor does a sterling job and is likely, even with a fully loaded Caravelle, to be more than enough. To make doubly sure, the twin turbo motor offers a welcome extra slug of power and torque, making it ideal if you want to tow something, or entertain a spot of off-roading.

Off-roading in a Caravelle? Oh yes, with the option of a 4Motion all-wheel drive system, drivers of Volkswagen’s Transporter range are fully equipped to tackle slippery conditions in confidence.

In fact, they have been able to for the last 25-plus years, but VW has further improved the vehicle’s oily bits While this might sound like a niche too far, there are plenty of applications for when a 4Motion vehicle might come in handy.

The electronically-controlled system will normally push 90 per cent of the engine’s power to the front wheels, but that can change depending on the conditions — 100 per cent to the rear is possible.

You’ll soon be grateful for the extra traction when gingerly driving through a muddy campsite, and this is one of the reasons why Volkswagen thinks a 4Motion California (VW’s full-on camper spec model) is likely to prove especially popular.

But it’s fair to say that most potential Caravelle and California buyers will likely stick with a regular front-wheel drive model. They will have made a good choice, as the basic proposition is an attractive one, oozing quality and practicality.

If, however, you need something to cope with more extreme motoring, be it for business or pleasure, the inclusion of the clever 4Motion system adds another layer of versatility to an already impressive package.

Model: Volkswagen Caravelle SE SWB 180 BiTDI DSG 4Motion

Peformance: 0-62mph: 12.1 seconds, top speed 117mph Economy: 32.1mpg CO2 emissions: 165g/km.

Price: From £35,900 Web: www.vwescape.co.uk