{"id":4171,"date":"2013-01-17T17:31:06","date_gmt":"2013-01-17T17:31:06","guid":{"rendered":"http:\/\/www.vanrental.co.uk\/vanblog\/?p=4171"},"modified":"2013-01-17T17:31:06","modified_gmt":"2013-01-17T17:31:06","slug":"used-van-prices-rise-in-december-as-supply-shortage-bites","status":"publish","type":"post","link":"https:\/\/www.vanrental.co.uk\/vanblog\/archives\/4171","title":{"rendered":"Used Van Prices Rise In December as Supply Shortage Bites"},"content":{"rendered":"

If you’ve been following the<\/a> story<\/a> of<\/a> used van prices at auction over the last few months, it will come as no surprise to you that BCA’s<\/a> average auction values for vans rose in December, resuming the upward path they have been on since August, barring a minor blip in November.<\/p>\n

However, there was at least some logic to the increase in December — average age and mileage fell over the month to\u00a055.9 months and 78,700 miles respectively , thanks to a higher proportion of good quality fleet and lease stock than usual.<\/p>\n

\"BCA

BCA average used LCV prices at auction, 2010 – 2012 (courtesy of BCA)<\/p><\/div>\n

Prices rising ahead of inflation<\/h3>\n

If you look at the bigger picture — always a good idea — then the news isn’t so good. A shortage of good quality supply (caused by a long-term slowdown in new registrations<\/a>) means that used van prices are rising far ahead of inflation.<\/p>\n

According to the latest figures from BCA,\u00a0December 2012 was ahead of December 2011 by \u00a3461 or 10.7%<\/strong>, with age virtually static and mileage rising<\/strong> over the period. \u00a0That’s 10.7% inflation for a van with more miles on it.<\/em><\/p>\n

Year-on-year table: All vans<\/p>\n

\n\n\n\n\n\n
All vans<\/strong><\/td>\nAvg Age<\/strong><\/td>\nAvg Mileage<\/strong><\/td>\nAvg Value<\/strong><\/td>\nSale vs CAP<\/strong><\/td>\n<\/tr>\n
Dec 2011<\/td>\n56.08<\/td>\n76,495<\/td>\n\u00a34,275<\/td>\n98.56%<\/td>\n<\/tr>\n
Dec 2012<\/td>\n55.93<\/td>\n78,793<\/td>\n\u00a34,736<\/td>\n101.12%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Duncan Ward BCA\u2019s General Manager \u2013 Commercial Vehicles commented:<\/p>\n

“The stock shortage is a long term issue and is unlikely to change until new van volumes pick up significantly and the economy improves enough to generate a bigger churn of vehicles in the marketplace.\u201d<\/p>\n

\u201cOverall, 2012 saw steady value growth in the used LCV market, with average values ahead of those seen in 2011.\u00a0 Buyer confidence is fairly fragile and there is a lot of buying to order, but competition for the best quality vans is driving values up.\u00a0\u00a0 Currently there appears to be little on the horizon that is going to change those market conditions, but with the continuing economic pressures and reduced business confidence it remains to be seen if we see the same robust value growth in 2013 that was experienced in 2012.\u201d<\/p><\/blockquote>\n

The problem is that even if new van registrations rise — which doesn’t seem likely — this increased supply will take several years to feed through to the secondary market, during which time supply pressures will continue to keep used values high.<\/p>\n

Still, it’s good news for large van hire<\/a> companies and other operators who do renew their fleets regularly — rising used values means that the total cost of ownership falls.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Used van prices resumed their upward trend in December, as supply shortages from low levels of new registrations continue to apply pressure on the market.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[8],"tags":[624,622,623],"_links":{"self":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/4171"}],"collection":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/comments?post=4171"}],"version-history":[{"count":3,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/4171\/revisions"}],"predecessor-version":[{"id":4175,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/4171\/revisions\/4175"}],"wp:attachment":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media?parent=4171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/categories?post=4171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/tags?post=4171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}