Auction sale prices for used van rose to an average of £5,908 in June, according to the latest figures from remarketing specialist BCA.

Although June’s average was only £16 higher than in May, it was a £321 (5.7%) higher than during June last year. However, a closer look at the figures shows that the increase in price is the result of younger, lower-mileage stock flowing coming off fleets and into BCA’s auction halls.

Data courtesy of BCA

BCA’s LCV Operations Director, Duncan Ward

Vans sold in June 2016 were on average 3.5 months newer and had 6,255 miles fewer on the clock. BCA’s Head of Commercial Vehicles, Duncan Ward, confirmed this view:

“History shows us that the commercial vehicle market typically slows over the summer months and we would expect to see some pressure on average values between now and the new registration plate in September.  While average selling price appears to be holding up, this is largely due to the influence of a younger, lower mileage profile of vehicles currently reaching the market.”

One way of judging whether prices are rising or falling in real terms is to compare sale prices with manufacturers’ recommended prices (MRP, or list prices). Helpfully, BCA provides this information.

As you can see below, in the fleet and lease sector, which accounts for the majority of volume, the Sale vs MRP is virutally unchanged on one year ago. This suggests to me that prices are flat-lining, with reduced age and mileage being balanced by higher sale prices:

Data courtesy of BCA

A constant feature in BCA’s monthly sales reports is a reminder of the importance of condition. Duncan Ward says this is becoming an ever-increasing issue as buyers become more selective and benefit from a greater choice of good quality stock:

“As buyers get more selective and focus on the best presented vehicles, the increasing volumes of poor condition, low specification vans are impacting conversion rates.  This less desirable stock, typically in corporate colours, needs to be competitively valued if it is to sell first time.”

June’s figures from BCA suggest that the van market is in a fairly good place at the moment. Long-running growth in new van registrations has had the predictable effect of pulling back used prices from the record levels seen in 2013 and 2014.

So far, there doesn’t seem to be any sign that Brexit fears are changing van buyers’ purchasing plans — new van registrations hit a record during the first half of the year, according to recent SMMT data.