{"id":9358,"date":"2016-10-18T05:56:58","date_gmt":"2016-10-18T05:56:58","guid":{"rendered":"http:\/\/www.vanrental.co.uk\/vanblog\/?p=9358"},"modified":"2016-10-18T05:56:58","modified_gmt":"2016-10-18T05:56:58","slug":"used-van-prices-hit-new-record-in-september","status":"publish","type":"post","link":"https:\/\/www.vanrental.co.uk\/vanblog\/archives\/9358","title":{"rendered":"Used van prices hit new record in September"},"content":{"rendered":"

Falling age profiles and strong demand helped keep used van prices at a record high<\/a> in September, according to auction specialist BCA.<\/p>\n

\"BCA<\/p>\n

The average value of a used LCV sold at BCA rose to \u00a36,140 in September, 9.5% higher than at the same point last year.\u00a0Of course,\u00a0this increase has been offset\u00a0to some extent by falling age and mileage:<\/p>\n\n\n\n\n\n
All vans<\/strong><\/td>\nAvg Age (months)<\/strong><\/td>\nAvg Mileage<\/strong><\/td>\nAvg Value<\/strong><\/td>\n<\/tr>\n
Sept 2015<\/strong><\/td>\n55.70<\/td>\n75,348<\/td>\n\u00a35,607<\/td>\n<\/tr>\n
Sept 2016<\/strong><\/td>\n54.15<\/td>\n71,509<\/td>\n\u00a36,140<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

I had expected that rising new van sales would dampen growth in the used market more quickly than it has done. But it looks like I didn’t make\u00a0sufficient allowance for the improved quality and value of used models that’s resulted from the recovery in the new van market.<\/p>\n

Here’s how used LCV prices have changed at BCA over the last year:<\/p>\n

\"BCA

BCA LCV sales Aug 15 – Sept 16 (source: BCA)<\/p><\/div>\n

A shortage of cheap vans?<\/h2>\n

Within these top level figures are three sectors,\u00a0fleet\/lease, part-exchange and nearly new.\u00a0The largest and most important of these is the fleet\/lease sector, where average age and mileage have fallen over the last year as prices have risen:<\/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
Sept 2015<\/strong><\/td>\n42.07<\/td>\n69,340<\/td>\n\u00a36,416<\/td>\n33.95%<\/td>\n<\/tr>\n
Sept 2016<\/strong><\/td>\n40.64<\/td>\n63,748<\/td>\n\u00a36,884<\/td>\n35.25%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

The falling average age suggests to me that fleet operators are moving back towards a three-year replacement cycle, perhaps in line with the warranty provisions on many van models.<\/p>\n

Interestingly, the\u00a0average value of part-exchange vans has risen slightly this year,\u00a0despite\u00a0<\/em>an increase in average age and mileage:<\/p>\n\n\n\n\n\n
Part-Ex<\/strong><\/td>\nAvg Age (mnths)<\/strong><\/td>\nAvg Mileage<\/strong><\/td>\nAvg Value<\/strong><\/td>\n<\/tr>\n
Sept 2015<\/strong><\/td>\n80.66<\/td>\n88,421<\/td>\n\u00a33,842<\/td>\n<\/tr>\n
Sept 2016<\/strong><\/td>\n83.70<\/td>\n91,622<\/td>\n\u00a33,997<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

These figures\u00a0suggest to me that buyers at the bottom end of the market are finding it harder to meet demand for more affordable models.<\/p>\n

Will Xmas parcel deliveries\u00a0support the market?<\/h2>\n

Duncan Ward is BCA’s Head of Commercial Vehicles. He makes the point that strong growth in a number of economic sectors has helped drive\u00a0strong demand for used vans over the last year:<\/p>\n

\u201cThe LCV market has seen continued value growth throughout much of 2016. There has been steady demand for vehicles to service online shopping delivery, the construction and civil engineering industries and the small business and entrepreneurial start-up sector. BCA continues to experience plenty of demand for tippers and dropsides, Lutons and larger panel vans, the latter often going back to work to service the online shopping sector.\u201d<\/p><\/blockquote>\n

Despite this healthy picture,\u00a0Ward warned that\u00a0“volumes are rising”<\/em> and said that buyers will have\u00a0“more choice in the weeks ahead”<\/em>. This could put pressure on values.<\/p>\n

However, the used van market saw a surge of demand late last year as couriers hunted down additional vans to meet record demand for Christmas delivery work. I wouldn’t be surprised if such demand helps support the used market\u00a0again this year.<\/p>\n","protected":false},"excerpt":{"rendered":"

Used van values hit a new record at BCA in September as the high volume fleet\/lease market continues to get younger.<\/p>\n","protected":false},"author":2,"featured_media":9359,"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\/9358"}],"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=9358"}],"version-history":[{"count":4,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/9358\/revisions"}],"predecessor-version":[{"id":9364,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/9358\/revisions\/9364"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media\/9359"}],"wp:attachment":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media?parent=9358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/categories?post=9358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/tags?post=9358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}