Used van values fell in May and June and flatlined in July, but August saw a return to normal — values moved firmly higher to hit a new record of £5,013 despite an increase in average age and mileage.

According to auction specialists BCA, who supplied the figures, record values were achieved in the fleet & lease and dealer part-exchange sectors, while nearly-new values were the second highest on record.

The underlying cause of the rising prices is the shortfall in new van registrations that we’ve seen since 2008, something I highlighted in a post yesterday.

Van operators aren’t willing or able to buy new vans, but they still need to replace existing vehicles, which has led to a supply crunch in the used markets that has driven up auction prices from an average of £4,075 in August 2012 to £5,013 in August 2013 — a 23% increase in one year:

The level of demand for decent used vans can be judged by the fact that while average prices have risen by 23%, the average mileage and age of used vans sold at auction have risen slightly over the same period; buyers are definitely not getting more for their money, and are now paying an average of 102% of CAP (book) price, up from 99% last August.

Average used LCV values July 2011 – August 2013 (courtesy of BCA)

Commenting on the results, Duncan Ward, who is BCA’s General Manager for commercial vehicles, said:

“Demand has been right across the board during August, from older higher mileage vans through to younger ex-fleet and lease vehicles, while the few late-plate light commercials on offer can make exceptional values.  As always, good condition is the key and vans with a nice specification and in an attractive retail colour are very desirable.”

“The outlook for September is more of the same, as stock remains in very short supply and, with retail LCV activity expected to pick up during the month, the market is experiencing a double whammy.   BCA has already recorded some exceptional results in light commercial sales during the early days of September, so there is every chance that average values could climb yet again this month.”

Will used van prices break another record in September? I’ll be back in a month’s time to let you know.