USED VAN SALES
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Used sales boost as new market slows
It’s an ill wind...
Words: Kevin Swallow The new van market has
started 2012 with a stutter, as registration igures published by the Society of Motor Manufacturers and Traders (SMMT) show numbers are down by a quarter.
Oficial SMMT year-to-date igures for vans up to 3.5 tonnes show that 22,521 had been registered during the irst two months of the year – down 25%, or 5,746, compared with the same period in 2011. The dip comes off the back of van registrations reaching 260,153 in 2011, up 16.7%.
Why the drop? Demand for Euro-3 compliant vans in the leadup to the changes to London’s Low Emission Zone (3 January 2012) meant a lull in 2012 was always in the ofing.
The decision-making effect of small and medium-sized enterpris es (SMEs) cannot be underestimated as this sector makes up the majority of van purchases in the UK. The Federation of Small Busi nesses (FSB) says that a third of its members are looking to increase their capital investment plans. John Walker, FSB national chairman, says it is a testament to the hard work and determination of the UK’s small businesses that, in the face of rising costs and falling demand, they are still more conident about the year ahead and are looking to expand.
However, it is clear that SMEs are taking a pragmatic approach to sourcing vans.
Sue Robinson, director of the RMI National Franchised Dealers Association, says so far this year small to mid-sized van sales declined signiicantly, by 34.3%.
“This type of van is typically purchased by small businesses or selfemployed individuals within the services industry.
“This industry is at present suffering from depleted business levels due to the current economic climate, which will be affecting their ability to commit to purchasing such big ticket items. ■
PRICES RISE ALONG WITH AGE AND MILEAGE
Declining new sales comes as prices for used vans continue to rise, despite higher mileage and age, according to Manheim Remarketing director of CVs James Davis.
Compared with February 2011 average values rose 4.6% year-on-year (£186 to £4,209) in spite of average age being up seven months and mileage up 5,721 miles.
Car-derived-vans, small, medium and large panel vans, as well as 4x4s, all saw increases. Davis says it is the segment data that requires close scrutiny in order to understand what is driving the wholesale van market.
“Our buyers are generally reporting mixed fortunes with regard to retail demand, but attendances in the halls and online are at record levels.
“The small panel van segment has always been a great barometer of the health of the UK SME sector. We have seen the average selling price rise year-on-year by 14% despite [the average van] being five months older with 3,300 more miles.
“However, the differences between vans sold to a hall bidder and those sold online are interesting.
“While age and mileage have increased for both, it is less pronounced for stock sold on line. The year-on-year increase in the average selling price for vans sold to physical buyers was £88. These vans were seven months older with just over 6,000 more miles.
“It’s a different story altogether with vans sold online,” he says.
“Here average selling price has increased £560 year-on-year despite age increasing by three months and mileage by 4,600. Vans sold online are clearly the younger, lower-mileage examples being fought over by all buyers.” In February 2012 average wholesale used van values increased by 3.7% (£150 to £4,209) compared with January 2012.