{"id":4474,"date":"2013-04-08T14:39:55","date_gmt":"2013-04-08T14:39:55","guid":{"rendered":"http:\/\/www.vanrental.co.uk\/vanblog\/?p=4474"},"modified":"2013-04-08T14:45:33","modified_gmt":"2013-04-08T14:45:33","slug":"used-vans-hit-record-prices-despite-rise-in-age-mileage","status":"publish","type":"post","link":"https:\/\/www.vanrental.co.uk\/vanblog\/archives\/4474","title":{"rendered":"Used Vans Hit Record Prices Despite Rise In Age & Mileage"},"content":{"rendered":"

\"BCABCA\u2019s latest Pulse data shows that average LCV values continued to rise<\/a> in March, with new record values set for fleet & lease and dealer part-exchange vans.<\/strong><\/p>\n

The average March figure of \u00a34,860 for all LCVs was the highest on record for any month since Pulse began reporting in 2005.<\/p>\n

Average age rose slightly to 58.8 months, while average mileage increased by over 2,000 miles to 80,800 miles.This continues a trend that has been ongoing for at least the last two years, as this graph shows:<\/p>\n

\"BCA

Used van values at auction Feb 2011 – March 2013 (courtesy of BCA)<\/p><\/div>\n

BCA’s Duncan Ward commented:<\/p>\n

“Values remained strong in the run-up to Easter, as the combination of limited supply and good levels of demand in the remarketing sector saw prices rise for corporate stock and older dealer part-exchange vans.\u00a0 LCV values have been universally strong throughout the first quarter of this year and are significantly higher than the same period last year.”<\/p>\n

\u201cIn fact the market has been even more competitive over the past few weeks and well-presented LCV\u2019s are routinely outperforming guide expectations \u2013 often by a considerable amount.”<\/p>\n

\u201cAnecdotal evidence from a number of sources suggests retail used van activity remains slow, yet the wholesale remarketing sector is relatively strong.\u00a0 BCA believe the continued shortage of stock is helping to drive demand and keep prices firm.\u201d<\/p><\/blockquote>\n

The ongoing strength of the wholesale used van sector becomes even more obvious and dramatic if you look at the figures for age, mileage and value over the last two years:<\/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
Apr 2011<\/strong><\/td>\n51.64<\/td>\n72,201<\/td>\n\u00a33,969<\/td>\n97.5%<\/td>\n<\/tr>\n
Mar 2012<\/strong><\/td>\n57.35<\/td>\n77,804<\/td>\n\u00a34,227<\/td>\n98.90%<\/td>\n<\/tr>\n
Mar 2013<\/strong><\/td>\n58.88<\/td>\n80,853<\/td>\n\u00a34,860<\/td>\n103.32%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(All data courtesy of BCA –\u00a0www.british-car-auctions.co.uk<\/a>)<\/em><\/p>\n

Monthly figures can sometimes create an exaggerated or distorted picture of what’s really happening — but in this case, there’s no mistaking the big trend.<\/p>\n

The average used van sold by BCA costs 15% more than it did one year ago, despite having 4% higher mileage. Looking back over two years, used van prices have risen by an average of 22%, despite a 12% rise in average mileage. Over the last two years, the average age of used van sold by BCA has also risen by 14%: used van buyers are paying more, and getting less.<\/p>\n

This is confirmed by the fact that used vans in April sold for an average of 103.3% of their CAP prices — trade buyers are paying over book price to secure new stock.<\/p>\n

As BCA’s Duncan Ward has been pointing out for many months, there is a dramatic shortage of used stock, due to a deep slump in new van registrations in 2009 and the fact that registrations are still well below pre-recession levels. Arguably, this is the new reality — used vans were undervalued before and will now become more valuable until such time as we enter another boom…<\/p>\n

Ultimately, it doesn’t really matter whether you think used vans are overpriced or underpriced — this is market reality, and sellers have the upper hand (which has proved helpful for van rental companies<\/a> like Northgate as they’ve downsized their nearly-new fleets<\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":"

BCA’s latest figures show that the upward trend in wholesale used van prices continues, with age, mileage, and price all hitting new records in March as vans sold at an average 103% of their CAP prices.<\/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],"_links":{"self":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/4474"}],"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=4474"}],"version-history":[{"count":3,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/4474\/revisions"}],"predecessor-version":[{"id":4479,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/4474\/revisions\/4479"}],"wp:attachment":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media?parent=4474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/categories?post=4474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/tags?post=4474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}