Used van prices have soared to an all-time record this year, as the collapse in van sales seen in 2008/9 continues to cause a shortage supply in the used market.
According to vehicle auctioneer BCA, the average used van price has risen by 55% since 2003 and by 42.9% since 2008, despite a rise in average mileages:
| All LCVs sold at BCA | 2003 | 2008 | 2013 |
| Average Sold price | £3,119 | £3,395 | £4,854 |
| Average Age (Months) | 51.0 | 49.9 | 58.3 |
| Average Mileage | 72,787 | 70,876 | 79,847 |
Data courtesy of BCA (www.british-car-auctions.co.uk)
Duncan Ward, BCA’s General Manager – Commercial Vehicles, says that competition for good quality used stock has been strong this year:
“Demand has been right across the board, 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. The end result has been record-breaking average values for fleet/lease and dealer P/X vehicles. As always, good condition is the key and vans with a nice specification and in an attractive retail colour are very desirable.”
The graph below shows LCV (light commercial vehicle) registrations from 2000-2015 (forecast). It’s easy to see how the current shortfall of decent used vans could continue for a couple more years yet:
UK new LCV registrations; 2000 – 2015 and supply gap (BCA 2013 Used Car Market Report/ACEA/Buckingham)
As I reported recently, demand is particularly strong for ex-fleet vans, such as those from large corporate, lease and rental fleets, where the vans’ quality and history is assured, and condition and mileage is usually better than average.
Vans are getting older
Predictably, the result of this supply shortage is that vans are getting older. According to Ward:
“Not only are vans getting older on average when they are sold, they are higher mileage. In fact, the average van sold in 2013 at BCA has covered 9,000 more miles than five years ago.”
According to the 2013 BCA Used Car Market Report, the average age of LCVs on the UK’s roads has now climbed to 7.4 years, compared to 6.87 in 2007.
With new van registrations rising strongly once more, this trend will eventually come to an end, but BCA’s prediction of more of the same next year might well be accurate, as I expect it to take another year or so for increased volumes of new vans to flow through to the secondary market.