Average used van prices fell by 2.9% in April — the first time prices have fallen since September last year, according to new figures from remarketing specialists BCA.

However, residual values for vans remain strong, and BCA’s April average sale price of £5,395 was the second-highest on record since 2005.

BCA used van prices, March 2012 April 2014 (graph courtesy of BCA)

To keep the month-by-month changes in context, it’s worth remembering that April’s average used van price was 7.9% higher than one year ago, while average age was unchanged at 58 months, and average mileage was up by around 3,000 miles:

(Data courtesy of BCA – www.bca-europe.com)

Return of normality?

In my view, this year’s strong growth in new van registrations could finally trigger a return to normality in the used market, albeit over a period of 6-9 months.

As I suggested in April, it’s rarely possible to call the top or the bottom of a market, but a good sign that things might be about to change is when people starting describing an exceptional situation as ‘normal’…

Discussing these results, Duncan Ward, BCA’s General Manager – Commercial Vehicles, said:

“The market slowed over the extended Easter and May Bank Holiday period and sale conversion rates have fallen back.  Volumes have risen quite noticeably, meaning there is more choice for buyers and this has impacted on average values.”

“There are signs that sellers are being more pragmatic about values, as performance against CAP declined noticeably compared to March. Dealer part-exchange vehicles saw performance fall around four points down to 102.0%, with corporate vehicles falling by two points to 100.5%.”

It’s too early to say, but with average used prices up by 26% since April 2012, it would be unsurprising if they took a breather in the face of improved new van sales and, perhaps, more confident sentiment and a new willingness to take on financing.

As always, watch this space.