Are Used Vans About To Get Cheaper?

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For some months now, I’ve been reporting on falling new van registration figures each month — they fell by 2.5% in June, for example. What I haven’t mentioned is the effect that low volumes of new van sales are having on the used van market.

Naturally, if fewer new vans are sold, fewer old ones enter the secondary market. What this means in practice is a particular shortage of good quality used vans under three years old — at this age and mileage, postponing replacement for another year is an easy decision for a cash-strapped small business.

Pay more, get less

What has been happening is that used van prices for all sizes of vans have been inching up, but so have age and mileage. In other words, buyers have been being forced to pay top money for older, higher mileage vans in worse condition.

As a result, used van prices were slightly higher in June 2012 (£4,171) than in June 2011 (£4,140), despite  average mileage having increased from 69,129 to 76,661 and average age having risen from 51.59 months to 58.21 months — both figures suggesting vans are being kept for an extra six months before being replaced.

Clearly, this trend can’t continue — and perhaps it is nearing its conclusion, as used prices were lower in June than they have been since last August.

The latest auction results from BCA confirm that this trend might be reaching a common sense limit, as Duncan Ward, BCA General Manager, explains:

“In fact, June brought a much needed reality check to the used commercial sector.  There was almost an expectation from vendors that dealers will continue to pay ever higher prices for older, higher mileage vans because stock is short in supply.   However, buyer confidence in the wholesale market is quite fragile and there is an increasing reluctance to buy poorer condition or excessively travelled vans because of the investment required to get these vehicles ready for retail.”

The graph below shows how used van auction prices have changed since 2010:

BCA used van prices June 2012

BCA used van prices June 2012 (graph courtesy of BCA)

It looks as though sellers looking for top prices are going to have to present their vans in exceptional condition, as Duncan Ward confirms:

“We have been advising our sellers for some time to review their remarketing activity to ensure their vans are presented in the most saleable condition.  Vehicles must be appraised sensibly and methodically and valued in line with market sentiment.  Pre-sale preparation and presentation is important, and all the documentation and service histories should be present when vans are sold.”

Falling used van prices should at least bring some semblance of fairness to the market, with buyers seeking rare, low mileage and nearly new vans continuing to have to pay a premium, while older vans go cheaper.

Leeds-Bradford Traffic Is Worse Than London

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Drivers in Leeds and Bradford spend even more time stuck in traffic than drivers in London, according to a new study by sat nav firm TomTom.

TomTom Congestion Index example graphic

TomTom Congestion Index - click to enlarge

Drivers in the Leeds-Bradford area are delayed by an average of 36 minutes in every hour during peak times — meaning that some spend a depressing 86 hours per year stuck in traffic jams. That’s equivalent to two weeks at work!

London is next on the list, with drivers in the capital spending an average of 74 hours per year in traffic jams.

Rush hour traffic in London was found to double  journey times,  with traffic delays adding 27% onto the length of journeys at other times.

Also near the top of the list is  Birmingham (73 hours per year), but Leeds-Bradford holds the overall crown for the UK and has the 7th worst traffic congestion in Europe – here’s the European top 10:

  1. Warsaw
  2. Marseille
  3. Rome
  4. Brussels
  5. Paris
  6. Dublin
  7. Bradford-Leeds
  8. London
  9. Stockholm
  10. Hamburg

TomTom gathers the data through its IQ Routes system, which collects anonymous data from millions of drivers’ sat navs all over Europe and uses it to calculate the fastest route for the time of day when working out a route for any journey.

For van drivers and others who are driving on business, it can be a make a worthwhile difference — especially if you choose a TomTom Live model, which receives live data about traffic congestion and delays and automatically recalculates your route, if necessary, to route you around the problem, rather than straight into it.

If you don’t have a sat nav of your own, many car and van hire firms now offers them as an optional extra — check when booking if you’re interested.

You can find the complete TomTom Congestion Index here.

Van Registrations Down 2.5% In June

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After a single month’s respite in May, new van registrations returned to their falling ways in June, dropping by 2.5% compared to June 2011.

The latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that new van registrations have now fallen by 10.1% across the year to date, although only by 0.9% on a rolling year (last 12 months) basis.

Bigger Is Better

Of the 22,287 new vans registered in June, more than half (13,323) were in the heaviest weight category, with gross weights between 2.5t and 3.5t. Interestingly, this was the only category to see a rise in registrations last month, rising by 8.1% while the other weight categories fell by as much as 22%.

Van registrations by weight, June 2012 vs June 2011 (courtesy of SMMT)

Van registrations by weight, June 2012 vs June 2011 (courtesy of SMMT)

Heavy News

Once again, truck registrations (goods vehicles > 3.5t) moved in the opposite direction, rising by 14.7% in June compared to June 2011. Truck registrations are now up by 26% on the year to date and 25% on a rolling year basis.

Van and Truck Registrations, 5 years to June 2012 (courtesy of SMMT)

Van and Truck Registrations, 5 years to June 2012 (courtesy of SMMT)

This growth is being driven by sales of rigids, which are more than compensating for falling artic sales to generate overall increases in the >3.5t category:

  • 3.5t – 6.0t: +62.5% YTD
  • 6.0t – 16t: +45.2% YTD
  • >16t rigid: +48.3% YTD
  • 2-axle artic: -2.9% YTD
  • 3-axle artic: -7.3% YTD

As before, I can only surmise that greater sales of rigids reflect companies’ needs to operate profitably on a slightly smaller scale than before, while tractor unit (artic) sales stagnate in reflection of the state of the wider economy.

Van News In Brief: 06/07/2012

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Bicycle deliveries for Europcar, new dealers for Isuzu Truck and and old Mitsubishi favourite returns.

Mitsubishi Brings Back L200 Trojan

Mitsubishi L200 Trojan Double Cab

Mitsubishi L200 Trojan Double Cab

The Mitsubishi L200 is probably the car that defines the modern pick-up trend. Hugely popular, its double cab was one of the first to offer car-like levels of comfort with genuine off-road, load-carrying ability.

Mitsubishi has capitalised on the popularity of this model with lifestyle buyers by introducing a steady stream of special editions, such as the recent Barbarian Black. Its now brought back another popular edition, the L200 Trojan Double Cab.

The Trojan comes loaded with accessories and the new model is far more powerful than the old one, delivering 30% more power (up from 136bhp to 175bhp) and 27% more torque (up from 314Nm to 400Nm). In addition to this, the 12MY Trojan is also Euro 5 compliant.

Europcar Staff Take To Two Wheels

Traffic in London is bad enough at the best of times, but it’s about to get much worse, as the London Olympics and Paralympics bring thousands of extra visitors and vehicles to the cities streets.

In addition, the Olympic Route Network means that ordinary road users, like delivery drivers and private motorists, won’t even be able to use half the roads in London (click here for a handy Olympic Route Network delivery planner).

If all of this wasn’t enough, demand for car and van rental is likely to soar during the Olympic period, with many of these customers needing to have vehicles delivered and collected from their premises. This means that rental companies are faced with the prospect of having their delivery drivers stuck in traffic and unable to move around as quickly as usual.

Europcar has taken a novel approach to solving this problem and is equipping its delivery drivers with electric bikes to help them get around as fast as possible. The bikes are folding models that fit into the boot of a car, enabling drivers to combine the best of both worlds and get around London as fast as possible — without adding to traffic congestion themselves.

4 New Isuzu Truck Dealers For Thames Valley

Isuzu Truck range

The Isuzu Truck range

Isuzu Truck has added The Cordwallis Group to its dealer roster, providing the brand with four new dealers covering the Thames Valley.

The long-established, family-owned Cordwallis Group opened its doors as an Isuzu Truck dealer in Reading and Heathrow on Monday 25th June, whilst the remaining 2 branches at Maidenhead and Eynsham near Oxford will become full dealers 1 month later on Monday 23rd July.

As Keith Child, marketing director at Isuzu Truck explains:

“The Thames Valley region represents a significant geographical area for Isuzu Truck and we are extremely pleased to welcome The Cordwallis Group into the Isuzu Truck dealer network. The group has a vast experience of commercial vehicles from lights to heavy weights through four established locations.

Europcar Boosts Van Hire Fleet

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Europcar is set to expand its rental van fleet following double-digit growth in demand for hire vans in the first half of 2012.

The car and van hire company is to place particular emphasis on supporting the flexible rental requirements of the logistics and courier sectors, which experience increasingly variable and strong demand due to the growth of the online home shopping sector — internet shopping, to you and me.

According to Europcar UK MD Ken McCall:

“We’ve seen a huge surge in demand for vans over recent months and we are responding by increasing the size and quality of our van fleet with the latest models to ensure our range includes the latest in fuel efficiency technology”

“As the trend for online shopping continues logistics companies have reported a spike in demand for delivery services. But it’s hard for businesses like this to instantly increase their own fleet capacity. That’s where short-term rental fits in and Europcar has been working hard to help these companies capitalise on the current market opportunities, by complementing their core fleet at short notice.”

The new additions to Europcar’s van fleet will include the compact Vauxhall Combo – winner Best New Van at the 2012 Fleet World Honours – and the Peugeot Partner. The company also plans to increase the number of larger models, such as the Southampton-built Ford Transit and the Luton-made Vauxhall Vivaro.

Nearly all of the new vehicles feature Euro 5 technology, the most fuel efficient engine on the market. Low-emission vans such as the Nissan NV200, with emissions under 150g/km, help companies comply with government legislation on CO2 emissions, as well as enabling them to save on tax and congestion charges – such as the low emission zone in London – on high polluting vehicles.

Speaking of the growing importance of environmental issues, McCall say, “We have seen more companies request low CO2 and more eco-friendly vans.”

All Europcar vans are on average 9 months old, and with the new vans that have been introduced, Europcar’s light commercial fleet is one of the youngest in the country. The vans are also fully maintained to manufacturer standards, ensuring they run efficiently so that Europcar’s corporate customers can access vehicles on which they can rely.

Don’t forget that you can compare van hire prices from Europcar and other leading companies using our unique van hire price comparison system — click here to get started.

Fuso Canter 7.5t Gets Factory Hybrid Solution

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Fuso Canter Ecohybrid

The Fuso Canter Ecohybrid

Mercedes-Benz is now selling a factory hybrid version of the Fuso Canter 7.5t truck in the UK.

The new EcoHybrid Fuso Canter has a 7.5-tonne gross vehicle weight and is ideally suited to urban, multi-drop work. It has demonstrated fuel savings of up to 23 per cent on trial, as well as correspondingly lower CO2 emissions.

What’s The Fuso Canter?

The Fuso Canter is a Japanese model that originally came from the Mitsubishi stable. The Fuso Canter model is now part of the Daimler Truck Group and although developed in Japan, is built in Portugal for the European market.

It’s increasingly popular and well-regarded by operators, and benefits from rugged engineering and light weight compared to most European-model 7.5t trucks (e.g. DAF, MAN, Mercedes). Admittedly it lacks some of the creature comforts and driver appeal of these rivals — but from an operator’s point of view, it is very attractive, particularly for urban and multi-drop work.

The Technical Details

The EcoHybrid features a Euro V-compliant 110 kW (150 PS) diesel engine which operates in parallel with a state-of-the-art, slimline, 40 kW electric motor installed between the  clutch and Duonic two pedal automated manual transmission.

Lithium-ion batteries backed by a 10-year manufacturer’s warranty provide an affordable ‘green’ solution and Mercedes says that service costs are comparable to a standard, diesel-engined Canter, demonstrated by identical Repair & Maintenance contract prices. Efficiency is boosted by a recuperation system which acts as a re-charging generator, transforming braking and deceleration energy back into useable electricity.

Trialled & Tested

In 2008 Fuso entered a three-year, London-based Hybrid trial, the largest in Europe, with partners Amey, DHL, Hill Hire, Royal Mail, Ringway, Scottish & Southern, Tesco and TNT. These trial vehicles, based on the previous generation Canter (TD model), were fitted with a variety of body types and daily workloads varied, but the operators reported fuel savings of up to 16 per cent.

Sam Whittaker, Director of Truck Sales & Marketing at Mercedes-Benz UK, said:

“The London trial was a great success for Fuso. As a result of intensive vehicle monitoring we learnt a great deal not only about the technology, but also about our customers’ needs and expectations. The trial demonstrated, in real-life, everyday conditions, the fuel savings and environmental improvements that can be achieved.”

“We’re delighted that as a direct result of the work which was done here in the UK, and of the data generated by our valued customers, we’re now able to offer a factory-built EcoHybrid Fuso Canter at an affordable and competitive price.”

The EcoHybrid, as all Fuso Canter models, will be sold and supported by the Mercedes-Benz Commercial Vehicle dealer network. The compact, manoeuvrable and bodybuilder-friendly chassis cab offers an impressive and class leading payload, even with the EcoHybrid technology on-board.

Nissan Confirms Pricing For NV400 Factory Conversions

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Nissan NV400 dropside tipper

Nissan NV400 dropside tipper from the company's range of factory conversions

Nissan launched its NV400 conversion range at the recent Birmingham CV Show. It has now confirmed pricing and specification details for this range, all of which are now available to order at UK Nissan dealers.

The NV400 chassis cab starts life as a mid or long wheelbase variant with either front or rear wheel drive, single and twin rear wheel and is available in a total of 13 versions. Powered by either the 125hp and 150hp version of the economical and powerful 2.5dCi diesel, the NV400 chassis cab is now available with the new range of factory built conversions.

The factory built NV400 minibus can accommodate nine people in comfort or combine six people and a generous load space. Two engine power options of 100hp and 125hp are available with three point seat belts and anti-lock brakes. The NV400 minibus starts at just £26,575.

With large windows and comfortable seats, the Nissan NV400 crew van seats up to seven people while still providing plenty of space in the cargo area. Choose from a wide choice of cargo and payload specs up to 1,398kg plus front or rear wheel drive for a van that perfectly matches a range of business requirements, all for just £25,565.

The Nissan NV400 dropside has a double skinned but light metal body and an integral front ladder rack. Available with a choice of either a single three seat or a double seven seat cab, front or rear wheel drive and a range of payloads up to 1,462kg, it makes a perfect workman’s vehicle. The NV400 dropside starts from £23,365 for a single cab and £25,765 for a double cab.

Hard-working yet comfortable, the Nissan NV400 tipper is available as a three seat single cab for £24,765 or a roomy seven seat double cab for £27,165 and offers a choice of mid or long wheelbase and a range of payloads up to 1,227kg. The load deck tilts automatically at 45°for quick, easy unloading.

In addition the Nissan NV400 will be enhanced with a range of Good to Go local conversions, including a box van, Luton and refrigerated van, plus a 14-17 seat minibus option that will be built by handpicked UK converters and sold by Nissan business centres to operators as a complete vehicle.

Nissan’s factory built and Good to Go approach guarantees that operators receive a quality and fully approved conversion complete with a manufacturer warranty.

Bishops Stortford Van Hire: Hilton Rental

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I’m very pleased to welcome Hilton Rental of Bishops Stortford to vanrental.co.uk. Hilton Rental is based on Raynham Road in Bishops Stortford and is only a few miles from Stansted Airport, making it very convenient for airport car, minibus and van hire.

Hilton Rental offers the following services to van hire customers:

  • Small, Medium and Large panel vans
  • Luton box vans with tail lifts
  • Meet and greet service at Stansted Airport
  • Delivery and collection service (T&Cs apply)

All vans are cleaned before each hire and regularly maintained and Hilton Rental can hire vans to drivers aged 21 upwards.

Customers can choose to use Hilton’s inclusive insurance and breakdown cover or provide their own cover.

Hilton Rental also offers a wide range of cars, minibuses and even campervans for hire.

To find out more, get a quote or make a booking, contact Hilton Rental direct:

If you’d like to promote your van or minibus hire company on vanrental.co.uk, click here to see our advertising options.

Olympic Route Network Delivery Planner – Online

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As I mentioned recently, the Olympic Route Network in London could cause havoc for freight deliveries during next month’s Olympic Games.

Transport for London (TfL) has now launched an online route planner for London that will take into account traffic congestion and the real-time restrictions being imposed by the Olympic Route Network. Operators can enter the date and time of their planned journeys and see the nearest permitted stopping points to their destinations.

Once the ORN (and later the Paralympic Route Network) kicks in, live data on traffic conditions and restrictions will be fed into the route planner every five minutes, which should provide you with a realistic view of the chaos your drivers will have to negotiate while Olympic ‘VIPs’ swish by in underutilised Zil lanes…

You can find the Freight Journey Planner on the TfL website.

Used Van Market Sales Trends

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Vehicle auctioneer Shoreham Vehicle Auctions Managing Director Alex Wright expects the used van market to do well this summer.

The company, which is based in Lancing, West Sussex, has seen strong sales of three to five year old vans in recent months; a trend Wright attributes to the fact that most SMEs and self-employed tradesmen can afford to buy vans of this age without requiring finance.

Wright says that any vehicle with “rarity value and intermittent supply” is doing well, something he expects will continue through the summer. One example is Nissan Cabstar tippers, which have recently been selling for as much as £5,000, well above their CAP average price of £3,550.

Nearly-new vehicles in the £8,000 – £15,000 price bracket are also proving harder to sell, as most buyers are unable to buy these without finance. Dealers are also choosing to cherry pick individual models to meet qualified demand, rather than building up stock levels.

As always, Shoreham advises that a sensible reserve is an essential ingredient for a first time sale, as is condition.