Average used van values rose by 3.9% in December, according to the latest figures from vehicle auctioneers BCA, leaving them a massive 24% higher than they were two years ago, in December 2011.
The increase took the average value for all used vans to £5,311, with all-time record values achieved for dealer part-exchange and nearly-new vans.
On a yearly basis, used van values rose by 12.1% in 2013, despite a rise in both average age and average mileage, as the figures in this table show:
Year-on-year table: All vans
| All vans | Avg Age (mnths) | Avg Mileage | Avg Value | Sale vs CAP |
| Dec 2012 | 55.93 | 78,793 | £4,736 | 101.12% |
| Dec 2013 | 59.37 | 81,351 | £5,311 | 102.07% |
Data courtesy of BCA (www.british-car-auctions.co.uk)
Commenting on the results, Duncan Ward, BCA’s General Manager – Commercial Vehicles, said that he expected more of the same in 2014:
“Average values for used LCVs remained high in December as buyers competed for the limited volume of stock on offer. Many corporate sellers held vehicles over for the New Year and dealer part-exchange stock filled the gap, resulting in a significant price rise for this sector during the month. Supply remains the key factor driving the market and this means there is plenty of competition for the best examples reaching the market.”
“While this is good news for sellers, from the buyers’ perspective the outlook for 2014 is that supply issues could actually worsen. Our view is that the overall shortage of used product and the issues of supply versus demand will see a continuation of high conversions and higher selling prices in 2014, effectively meaning we are going to see more of what is best described as a “sellers’ market”.
A one-way market?
As the graph below shows, prices have risen steadily since 2011 — but this situation cannot last forever:
Recent growth in new van registrations will eventually feed through to the used market and dampen price inflation. If the economic recovery continues to gather pace, demand for new vans, as opposed to used vans, could also rise.
Despite this, I’m tempted to agree with Ward’s expectations that 2014 will be another expensive year for used van buyers, as it is likely to be 18-24 months before the increase in new van registrations feeds through to the used market.
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