Late used vans close to the price of new A
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GLASS CEILING on late-year van values is being created by competitive new van offers, according to MD of Shoreham Vehicle Auctions Alex Wright.
He said the maximum bid made in the auction hall is directly linked to the current new offers from respective manufacturers, which creates a ceiling.
"We are often amazed at how close late, low-mileage vans come to the new purchase price. This often creates specific challenges for this sector, to the point it is really a market of its own and has to be treated as such," he added.
The latest Society of Motor Manufacturers and Traders (SMMT) 2013 registrations, which were up more than 12% on the same two-month period last year, show a renewed interest in buying new and shows how the demand for new is growing, said Wright, before adding that turning to new has also been fuelled by shortages of used stock.
In particular, the 3.5-tonne vans under two years of age that came to auction in January were, on average, 17 months old with more than 40,000 miles on the clock. These vans are up to three months older than the equivalent in December 2012, and with twice as much mileage.
This is indicative of rental companies providing short-term contracts to delivery companies to meet Christmas deliveries for online shoppers, he added.