Used van values continued to soar in September, according to vehicle auctioneers BCA, as the supply crunch in the used sector continued to force professional buyers to up their bids to secure sufficient vans to meet demand.

The average September figure of £5,158 for all LCVs represented a 2.8% increase over the August value, with average age rising slightly to 59.3 months and average mileage static at just over 80,000.

Year-on-year values remain well ahead, up by £934 equivalent to a 22.1% uplift over the twelve month period.  Average CAP performance climbed again to 105.19%, rising by nearly three points compared to August and up by 4.5 points compared to a year ago.

Read that again: values are up 22% over the last year and buyers are paying an average of 105% of CAP book price. What’s more, buyers are buying older, higher mileage vans at these new high prices, too, as this table shows:

Duncan Ward BCA’s General Manager – Commercial Vehicles commented:

“BCA saw exceptional levels of demand for light commercial vehicles during September, with a number of 100% conversions for corporate sellers and notably higher average values for fleet/lease vehicles.   The market remains very short of good quality stock and with anecdotal evidence suggesting retail activity picked up in September there was very competitive bidding right across the remarketing sector last month.”

This graph shows how used van values have risen steadily over the last two years, leaving you to wonder when van values really will peak (after their false peak in April this year):

Average used values from Aug 2011 – Sept 2013 (courtesy of BCA)

Recent increases in new van registrations will take 2-3 years to filter through to the used market, during which time supply is likely to remain tight. Duncan Ward doesn’t think this trend will end anytime soon, as it is underpinned by the shortage of new vans registered since the recession:

“With professional buyers increasingly looking at buying older, higher mileage vehicles we have seen values rise in the dealer P/X sector, while demand for the very few late year, low mileage LCV’s remains intense. As always, good condition is the key and vans with a nice specification and in an attractive retail colour are very desirable.”

“Looking ahead, there are no signs that stock availability is going to rise substantially this year or even into 2014.  There is an ongoing shortage of younger used LCVs in the marketplace because of the lower new van sales following the onset of the recession.”