After hitting record levels in April, average used van values at auction dropped back slightly last month, according to the latest figures from auction specialists BCA.

The average May figure of £4,870 for all LCVs represented a fall of £128 (2.5%) compared to April.

Average age fell back to just under 58 months, although average mileage increased slightly during May.

Both fleet & lease and dealer part-exchange sectors saw values decline from the previous high points recorded in April.

BCA Used LCV Values May 2009-2013 (courtesy of BCA)

On a year-on-year basis, values remained high and were 11.4% higher than in May 2012, despite the average age and mileage of the vans being sold having risen over the last year:

Data courtesy of BCA

BCA’s Duncan Ward commented:

“Although values declined by around 2.5% across the board, demand remains strong across the range of used light commercials at BCA.   Even so, buyers are sensitive to mileage and condition, and excessive mileage or damage will significantly impact the price performance.  The best prices are paid for vans in good colours with a high specification and any rare or unusual vehicles will generate the most attention.”

Ward acknowledged that “after many months of strong value growth”, there is some uncertainty about where the market is heading over the remainder of this year. Although low volumes of high quality used stock have helped to inflate underlying prices, this trend cannot continue for ever, especially given the continually rising average mileage and age of the U.K.’s used van stock.

Discussing the results, Ward says that sellers will have some influence over future price movements and may need to revise their strategies:

“With the first decline in average values seen this year, now would be a good time for volume sellers to review their selling strategies and make sure they are fully in tune with market sentiment.  Vans should be sensibly valued to sell and corporate sellers should offer LCVs with full documentation and service histories and ensure they are presented in the best possible condition following pre-sale preparation.  Sellers also need to manage the supply of similar makes and models, because it can have a direct impact on price performance – even for attractive retail-quality vans.”

Van hire companies and other large fleets often de-fleet dozens or even hundred of identical vans at the same time, so it’s easy to see how this can cause a ‘feast and famine’ situation.

With UK GDP growth continuing to hover just above zero, it will be interesting to see how the remainder of the year pans out for the used van market.