Prices up as vans age
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Used van prices are rising this year despite vans having more miles on the clock and being older than those sold 12 months ago, reports Manheim Remarketing
Words: Kevin Swallow COMPARATIVE igures between July 2012 and July 2011 show the average resale price of vans rose by £124 (3.4%) in this period.
James Davis, director of CVs at Manheim Remarketing, said the July market report supports the view that the used van market remains buoyant. “Car-derived van values are up £154, despite being two months older; smaller panel vans have also increased their value by £101, despite being three months older and having more than 6,000 additional miles on the clock compared to the average vehicle sold at auction last year,” he said.
The small panel van segment remains popular with smallto medium-sized enterprises, he said, and is often cited as a good barometer of business conidence. “In times of uncertainty and austerity, savvy businesses are more likely to see the value in buying a well-maintained workhorse compared with the cost of a new vehicle. There is no doubt that vehicles are running longer in this sector by irst-life operators, so any headline analysis must consider age and mileage proile,” he said.
Values have reduced slightly on large panel vans (over 3 tonnes) in 12 months by £43, as well as the trend of increasing in age by three months and 15,000 miles added, on average. This created the highest average mileage in July 2012 of 108,238 miles; the highest seen since the Manheim Monthly Market Analysis report was irst published in 2006.
“It’s worth pointing out that this is the true workhorse van segment on UK roads and continues to be popular at auction. Sure, the headline value of large panel vans may have decreased marginally, but remember these vans are typically several months older and have much higher miles, looking at the year-on-year trend,” Davis added.
The used van market is still blighted by damaged and duplicate models across the major van segments, with dealers preferring not to tie up cash without an order to pad out the forecourt. “Subsequently, conversion rates have softened in line with seasonality. Dealer sentiment would indicate that they expect the summer retail lull to end now, when historically the market rallies,” he concluded.