Have used van values finally peaked? The latest data vehicle auctioneers BCA suggests that they might have done, although prices in June remained a whopping 14% up on average prices in June 2012 — well above inflation.
The average June figure of £4,766 for all LCVs represented a fall of £104 (2.1%) compared to May. Average age remained at just under 58 months, although average mileage increased for the second month running. Fleet & lease values improved marginally over the month, while dealer part-exchange sectors saw values decline for the second month running and are now 10.5% down from the record levels seen in April.
Average used LCV values May 2011 – June 2013 (courtesy of BCA)
Year-on-year, June 2013 was ahead by £595 or 14.2%, a significant rise on last month’s figures with age declining and mileage rising over the period. Average CAP performance was notably higher in 2013.
Year-on-year table: All vans
| All vans | Avg Age (mnths) | Avg Mileage | Avg Value | Sale vs CAP |
| June 2012 | 58.21 | 76,661 | £4,171 | 97.73% |
| June 2013 | 57.95 | 80,714 | £4,766 | 100.34% |
Data courtesy of BCA (www.bca-europe.com)
BCA’s Duncan Ward commented:
“While average values declined for the second month running across the board, the low supplies of good retail-quality vans mean demand for these vehicles remains strong and this has benefited the fleet & lease sector where values rose yet again. The overall decline in average value is simply a result of buyers becoming a little more selective and not showing the same willingness to bid as strongly on high mileage and damage. Many corporate sellers are investing in pre-sale preparation – this is particularly important where vans have been body wrapped in vinyl livery as it allows their vehicles to be presented to the used buyer with an original factory finish.”
Ward expects values to continue to weaken through the summer months, commenting:
“The summer months are traditionally been quieter in the wholesale van markets and with the school holidays imminent at the time of writing we should expect to see demand softening a little over the next few weeks. Now would be a good time for volume sellers to review their remarketing plans and make sure they are fully in tune with market sentiment.”
The next three months should show which way the tide is flowing — is the fall in used values related to the 11% increase in new van registrations we’ve seen so far this year?