Used van prices hit high of £6,368 in October, according to BCA. The auctioneer said that the figure was the highest since its began reporting monthly sales in 2005.

BCA said that sales around its UK-wide network of sites were “exceptionally strong”, with average values rising 3.8% (£238) over the month. The average LCV value in October was 12.8% higher than at the same point last year.

As I always point out in these articles, it’s important to look at rising prices in the context of falling average age and mileage, as well as varying model mix. Here’s how age and mileage have changed over the last year:

Source: BCA

The average LCV sold by BCA in October was three months newer and had 6,000 fewer miles than one year ago.  So you’d expect buyers to be paying more. These figures tend to confirm what we’ve been seeing for a while, which is that fleet refresh cycles are continuing to trend lower — or perhaps normalising — as the financial crisis becomes more of a distant memory.

Figures for the fleet and lease sector show that average age has fallen by nearly three months over the last year, while average mileage has fallen by 9,000 miles. This big drop in mileage may be why these desirable vans are fetching a higher proportion of their original book price:

Source: BCA

BCA’s Head of Commercial Vehicles, Duncan Ward, commented:

“With recent surveys suggesting improved confidence in small business sectors, an expanding economy according to the ONS and a relative shortage of good quality stock, there is plenty of demand in the used van market.  Both professional buyers and end users are bidding confidently across a range of makes, models and configurations with lots of competition for LCVs that are in ready-to-retail condition.  Values for the best examples will outstrip price guide expectations by a considerable margin.”

“As the Christmas season approaches, online retailers will place increasing demands on the parcel delivery and courier sector, and we expect to see continued interest for larger panel vans over the next few weeks.  The budget van sector is also buoyant, with average values for part-exchange stock rising to the second highest point on record in October.”

Mr Ward’s point about part-exchange stock rising in value suggests small couriers may be buying cheap vans to provide extra capacity for the festive delivery season. One imagines the vans will then be sold off again in the New Year.