{"id":8953,"date":"2016-06-08T16:27:03","date_gmt":"2016-06-08T16:27:03","guid":{"rendered":"http:\/\/www.vanrental.co.uk\/vanblog\/?p=8953"},"modified":"2016-06-08T16:27:03","modified_gmt":"2016-06-08T16:27:03","slug":"used-van-prices-level-out-in-may-bca","status":"publish","type":"post","link":"https:\/\/www.vanrental.co.uk\/vanblog\/archives\/8953","title":{"rendered":"Used van prices level out in May – BCA"},"content":{"rendered":"

Used van prices were broadly unchanged in May, according to auctioneers BCA.\u00a0The average price of a van sold by BCA last month was \u00a35,892, down marginally from \u00a35.966 in April<\/a>.<\/p>\n

\"BCA<\/p>\n

Falling age and mileage continued to drive year-on-year gains, however,\u00a0with prices 6% higher than in May 2015:<\/p>\n\n\n\n\n\n
All vans<\/strong><\/td>\nAvg Age (mnths)<\/strong><\/td>\nAvg Mileage<\/strong><\/td>\nAvg Value<\/strong><\/td>\n<\/tr>\n
May 2015<\/strong><\/td>\n58.07<\/td>\n78,012<\/td>\n\u00a35,558<\/td>\n<\/tr>\n
May 2016<\/strong><\/td>\n54.42<\/td>\n71,121<\/td>\n\u00a35,892<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: BCA<\/em><\/p>\n

Interestingly, a closer look at the underlying numbers suggests that used van buyers may be getting better value for money than they were one year ago. Here’s the\u00a0year-on-year price table for\u00a0the Fleet & Lease sector, which accounts for the majority of volume and value in BCA’s LCV business:<\/p>\n\n\n\n\n\n
Fleet\/Lease<\/strong><\/td>\nAvg Age (mnths)<\/strong><\/td>\nAvg Mileage<\/strong><\/td>\nAvg Value<\/strong><\/td>\nSale vs MRP<\/strong><\/td>\n<\/tr>\n
May 2015<\/strong><\/td>\n42.62<\/td>\n70,195<\/td>\n\u00a36,447<\/td>\n35.66%<\/td>\n<\/tr>\n
May 2016<\/strong><\/td>\n40.36<\/td>\n61,840<\/td>\n\u00a36,786<\/td>\n35.70%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: BCA<\/em><\/p>\n

The key thing to note here, in my opinion, is that the\u00a0Sale vs MRP (Manufacturer’s Recommended Price) has remained virtually flat, at 35.7%. Yet average age and mileage have fallen by 5% and 12% respectively. So buyers are getting newer and lower mileage vans for the same price as last year, relative to manufacturer’s list prices.<\/p>\n

A summer lull?<\/h2>\n

Duncan Ward, BCA’s LCV Operations Director,\u00a0sounded a note of caution about the near-term outlook for the market, citing\u00a0typical seasonal trends and one-off factors which could affect sales this year:<\/p>\n

“With the summer months upon us, the market is now moving into a period when demand and\u00a0values typically remain relatively flat and this year we still have the distractions of the UEFA Euro 2016\u00a0tournament, the EU referendum and the Rio Olympics all to come. History tells us events such as these have\u00a0notable if short-term effects on the LCV sector and this year will probably be no different.”<\/p><\/blockquote>\n

Despite this,\u00a0Ward believes\u00a0underlying\u00a0market conditions remain strong, with\u00a0demand being driven by the construction and civil engineering industries, as well as\u00a0the home delivery market.<\/p>\n

Are rental firms flooding the market with\u00a0battered vans?<\/h2>\n

As always, when market conditions\u00a0soften, condition and quality will be key. Unfortunately,\u00a0Duncan Ward cites\u00a0the van rental sector as a volume source of\u00a0“basic specification”\u00a0<\/em>white vans which\u00a0“are often in poor condition”<\/em>. Buyers will refuse to pay top dollar for such models,\u00a0he says.<\/p>\n

Maximising residual values is a constant concern for rental companies,\u00a0as it can have a big impact on their profitability. But it’s inevitable that\u00a0many rental vans will be white and basic specification, because that’s what customers require and will pay for. It’s equally inevitable that some of these vans will be\u00a0fairly scruffy by the time they’re defleeted.<\/p>\n

I suppose Mr Ward’s warning to rental sellers is that they need to price realistically to ensure a prompt sale.\u00a0Such is life.<\/p>\n","protected":false},"excerpt":{"rendered":"

Used van prices were flat in May, according to BCA. But despite a 6% year-on-year increase, reductions in average age and mileage suggest value for money is improving in the used van market.<\/p>\n","protected":false},"author":2,"featured_media":8954,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[8],"tags":[624,1885],"_links":{"self":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/8953"}],"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=8953"}],"version-history":[{"count":4,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/8953\/revisions"}],"predecessor-version":[{"id":8958,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/8953\/revisions\/8958"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media\/8954"}],"wp:attachment":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media?parent=8953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/categories?post=8953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/tags?post=8953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}