Used van prices were broadly unchanged in May, according to auctioneers BCA. The average price of a van sold by BCA last month was £5,892, down marginally from £5.966 in April.
Falling age and mileage continued to drive year-on-year gains, however, with prices 6% higher than in May 2015:
| All vans | Avg Age (mnths) | Avg Mileage | Avg Value |
| May 2015 | 58.07 | 78,012 | £5,558 |
| May 2016 | 54.42 | 71,121 | £5,892 |
Source: BCA
Interestingly, a closer look at the underlying numbers suggests that used van buyers may be getting better value for money than they were one year ago. Here’s the year-on-year price table for the Fleet & Lease sector, which accounts for the majority of volume and value in BCA’s LCV business:
| Fleet/Lease | Avg Age (mnths) | Avg Mileage | Avg Value | Sale vs MRP |
| May 2015 | 42.62 | 70,195 | £6,447 | 35.66% |
| May 2016 | 40.36 | 61,840 | £6,786 | 35.70% |
Source: BCA
The key thing to note here, in my opinion, is that the Sale vs MRP (Manufacturer’s Recommended Price) has remained virtually flat, at 35.7%. Yet average age and mileage have fallen by 5% and 12% respectively. So buyers are getting newer and lower mileage vans for the same price as last year, relative to manufacturer’s list prices.
A summer lull?
Duncan Ward, BCA’s LCV Operations Director, sounded a note of caution about the near-term outlook for the market, citing typical seasonal trends and one-off factors which could affect sales this year:
“With the summer months upon us, the market is now moving into a period when demand and values typically remain relatively flat and this year we still have the distractions of the UEFA Euro 2016 tournament, the EU referendum and the Rio Olympics all to come. History tells us events such as these have notable if short-term effects on the LCV sector and this year will probably be no different.”
Despite this, Ward believes underlying market conditions remain strong, with demand being driven by the construction and civil engineering industries, as well as the home delivery market.
Are rental firms flooding the market with battered vans?
As always, when market conditions soften, condition and quality will be key. Unfortunately, Duncan Ward cites the van rental sector as a volume source of “basic specification” white vans which “are often in poor condition”. Buyers will refuse to pay top dollar for such models, he says.
Maximising residual values is a constant concern for rental companies, as it can have a big impact on their profitability. But it’s inevitable that many rental vans will be white and basic specification, because that’s what customers require and will pay for. It’s equally inevitable that some of these vans will be fairly scruffy by the time they’re defleeted.
I suppose Mr Ward’s warning to rental sellers is that they need to price realistically to ensure a prompt sale. Such is life.