Residual values at auction still stable
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By Kevin Swallow
THERE IS GOOD news in the used van sector as auction houses report that strong residual values in the sector have remained stable.
The average used van price achieved by British Car Auctions (BCA) through October this year fell by just £7 from a record high of £5,158 in September, while Manheim reported its average price held at £4,250 through both months.
While the figures are not comparable, the movement of the numbers does provide a significant benchmark for the sector. Duncan Ward, BCA general manager, said professional buyers continue to bid competitively across the range of LCV stock on offer at BCA and prices remain strong. "However, issues over supplies
of retail quality used vans remain and buyers are prepared to bid on older vehicles in good condition and even vans requiring refurbishment to make up the shortfall," he said.
Behind Manheim's headline average selling price are significant swings in age, mileage and sale value, explained James Davis, head of CVs at Manheim.
"This is due to shortage of stock and the greater impact of an influx of vans from one vendor or contract," he added.
In October, the age and mileage of car-derived vans climbed by one month and more than 7,000 miles respectively, prompting a fall in average values from £3,321 to £2,892.
"Conversely, the value of small panel vans rose from £4,122 to £4,243, driven by an influx of younger stock into the auction halls," he added.