- Used van prices rise for first time in three months
- More used LCVs coming through the system
- Prediction is used values will fall in coming months
Used van values rose slightly in September, according to the UK’s two leading automotive auction companies. British Car Auctions (BCA) witnessed a 1.8 percent rise in the sale price, reversing a two month decline, and Mannheim saw 1.5 percent uplift, although the stock was younger and lower mileage.
Part of this trend is attributed to the increasing number of ex-financed vans coming through the ranks. A lot of these vehicles are subject to mileage caps, and are generally in better condition, which helps retain resale values.
“We are now seeing the return of more typical market conditions with balanced supply and demand and elements of seasonality taking effect”, BCA’s LCV Operations Director, Duncan Ward, commented.
“The market was strong in September with average values increasing across the board and good levels of demand from buyers for well presented, good quality commercial vehicles”.
“However, we continue to see a large number of vehicles in poor condition and this has a significant impact on price and conversion rates. The difference in average value between a condition 5 and a condition 4 van is several hundred pounds”.
4x4 Commercials in increased demand
September is the time of year where operators start to think about winter vehicles, and this inevitably leads to a rise in demand for 4x4s. It was no surprise that the higher-mileage or older stock in September sold for £455 more (6.7 percent up), on average, than it did in August for similar aged and mileage vans.
An interesting statistic to come out of the Mannheim report was that the average 4x4 Commercial sold (with an age of 114 months and mileage in excess of 97,000) still retained 25 percent of its original value.
Van values set to fall
The average age of vans coming through is around five to six years old, which corresponds to a registration date of around 2009-2010, when there was a slump in new van sales. ISince then new van sales have picked up and in the next couple of years, the quantity of secondhand vehicles entering the auction houses is expected to swell, which is likely to lead to a fall in values.
Find out what your van is worth using our Parkers Van Valuations service.