![\"Manheim](\"https:\/\/www.vanrental.co.uk\/vanblog\/wp-content\/uploads\/2014\/03\/manheim-logo-300x118.jpg\"){kind=logo}
Used van prices have\u00a0now risen above\u00a0the peak pre-recession levels seen in 2006, according to\u00a0auction specialist, Manheim.<\/p>\nUsed van prices have\u00a0now risen above\u00a0the peak pre-recession levels seen in 2006, according to\u00a0auction specialist, Manheim.<\/p>\n
The firm extended its usual five-year reporting window\u00a0to eight years, in order to compare today’s market conditions with those before the\u00a0financial crisis.<\/p>\n
The resulting analysis shows that\u00a0despite vans being an average of nine months older, with 12,000 more miles on the clock, buyers in auction halls and online in 2014 are having to bid an average of 45%, or \u00a31,500, more than they would back in 2006 to secure them.<\/p>\n
Of course, one explanation for\u00a0this is that cash-strapped businesses have been finding it difficult to get finance and have chosen to buy used, for cash, rather than\u00a0buy new. New van registrations\u00a0have been\u00a0weak for much of the last six years<\/a>, and are only now beginning to get close to\u00a0the 2007 level<\/a> of 300,000+ new vans per year.<\/p>\n The fall in\u00a0new sales created a corresponding surge in demand for used vans, but Matthew Davock, head of light commercial vehicles at Manheim, says that despite this, the firm didn’t expect\u00a0used van values to rise so strongly:<\/p>\n “2006 and 2007 were widely acknowledged as the “boom” years in the new and used van markets. When new van registrations collapsed by 50% in 2009 a corresponding used van supply time bomb was set.<\/p>\n So, when combining this with subsequent “bust” and post recessionary recovery and the critical reliance on commercial vehicles by UK Plc, perhaps it is of little surprise to see that the used market has surged. What is so remarkable is that, despite considerable increases in average mileage and age we have witnessed such an inflation of used van values.”<\/p><\/blockquote>\n Manheim is now expecting average selling prices to remain broadly stable over the next 12-18 months, as the firm’s head of commercial vehicles, James Davis, explains:<\/p>\n “The only destabilising market factor will be a significant increase in supply over an extended period; yet there are few signs that de-fleet volumes will track this way over the next 12 to 18 months.<\/p>\n Instead I believe it more likely that we’ll see a steady increase due to both economic recovery and new registration growth. This, combined with a corresponding reduction in the number of extended vans, will see average age fall. Given the last 8 years these two may even balance each other out resulting in the average selling price remaining at the current levels.”<\/p><\/blockquote>\n I agree with Mr Davis’ logic, but\u00a0I think it’s also worth considering how many buyers will shift from buying used to buying new — this could accelerate the creation of a supply surplus in the used market and create price weakness slightly earlier than expected.<\/p>\n","protected":false},"excerpt":{"rendered":" Used van values are an average of 45% more than they were in 2006, despite higher age and mileage, according to new data released by Manheim.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[8],"tags":[1842],"_links":{"self":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/6402"}],"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=6402"}],"version-history":[{"count":1,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/6402\/revisions"}],"predecessor-version":[{"id":6403,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/6402\/revisions\/6403"}],"wp:attachment":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media?parent=6402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/categories?post=6402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/tags?post=6402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}