Used van values remain near record levels, according to leading vehicle auctioneers BCA, despite the expected seasonal decline and the fact that average age and mileage continue to climb.
According to BCA’s latest Pulse Report, average used LCV values fell back in November by £197 (4.4%) to £4,250. Both average age and mileage rose over the month to 59.7 months while average mileage increased to 81,400.
Despite the fall, price performance remained on a par with much of 2012, with average values at near record levels in the fleet/lease sector, while the low volume nearly-new sector recorded the highest monthly value since Pulse began reporting in 2005. Performance against CAP average fell over the month by a point to just under 100%.
Year-on-year, November 2012 was behind by £54 or 1.2%, with both average age and average mileage increasing over the period, as the figures in this table show:
|All vans||Avg Age||Avg Mileage||Avg Value||Sale vs CAP|
Source: Data courtesy of BCA
The fall in van registrations since 2008 means that supply continues to be tight, meaning that even poor quality vans continue to sell, as BCA’s General Manager Duncan Ward explains:
“Typically when the market eases, buyers leave the poorest condition vehicles behind but with the shortage of stock in the marketplace, sale volumes held up well in November and were on a par with October’s figures.”
The graph below shows just how strong used LCV values have remained since 2010, despite a weak economy and a rising mileage and age profile as fleets keep vehicles on the road longer before replacing them:
Duncan Ward again:
“Overall, prices remain strong when taking the longer view and average values during 2012 have probably exceeded the expectations of most market watchers when placed in the context of the relatively weak economy and low business confidence.”
In other words, it’s remarkable what a really tight supply can do to the market — especially when finance for new vans becomes harder to get and less attractive.