Stock shortages mean that used vans keep on getting more expensive — despite rising age and mileage.
According to BCA’s latest Pulse Report, average used LCV values improved in October by £223 (5.2%) to £4,447, with year-on-year figures ahead by £144 or 3.3%. Average age fell slightly to just under 58 months while average mileage increased to nearly 79,000. Price performance was strong across the board, with average values reaching record levels in the fleet/lease sector.
Performance against CAP average improved over the month by a point to 101.8%, although it’s worth pointing out that this is nearly 2% less than at the same time last year, suggesting a slight weakening in demand (or improvement in supply).
Year-on-year, October 2012 was £146 (3.4%) ahead of the same month in 2011, with both average age and average mileage increasing over the period:
|All vans||Avg Age||Avg Mileage||Avg Value||Sale vs CAP|
Duncan Ward BCA’s General Manager – Commercial Vehicles commented:
“October has been a relatively strong month for LCV sales and average values improved compared to September. Real and ‘virtual’ footfall at LCV sales has increased significantly and the on-going shortage of retail quality stock is keeping values very firm indeed.”
As this graph shows, used van values have remained firm and drifted gradually higher since 2010:
Duncan Ward was keen to emphasis that as ever, quality vehicles attract a strong premium and pretty much fly off the shelves:
“Any vehicle in clean condition will attract the buyers’ attention, including older, higher mileage vehicles if they are well presented. As a direct consequence, values continue to rise for dealer P/X stock, where average CAP performance is actually higher than the corporate sector. Buyers will compete strongly for any vehicle with an unusual specification or modification such as crew cab vans, cherry pickers, tippers and dropsides and we are now seeing the upswing in demand for LWB panel vans, Lutons and fridge vans ahead of the Christmas period.”
Considering that new van registrations continue to fall and are far below the levels seen in 2007, strong demand for used models looks set to remain firm, which means we will all have to keep on paying more for older, higher-mileage vans!