{"id":9711,"date":"2017-03-14T14:15:58","date_gmt":"2017-03-14T14:15:58","guid":{"rendered":"https:\/\/www.vanrental.co.uk\/vanblog\/?p=9711"},"modified":"2017-03-14T14:15:58","modified_gmt":"2017-03-14T14:15:58","slug":"ex-rental-vans-create-challenging-conditions-in-used-market","status":"publish","type":"post","link":"https:\/\/www.vanrental.co.uk\/vanblog\/archives\/9711","title":{"rendered":"Ex-rental vans create challenging conditions in used market"},"content":{"rendered":"

If you’re a used van dealer buying vans under two years old at auction, how do you work out how much you should pay?<\/p>\n

\"Manheim<\/p>\n

In theory, you should be able to use trade guide prices. In reality, you need to pay attention to the generous discounts being offered on new vans by manufacturers.<\/p>\n

The problem is that your\u00a0one or two year old van has got to be cheaper than a new van.\u00a0So the only way to work out how much to pay at auction is to start\u00a0with the\u00a0price of a discounted new van and work backwards.<\/p>\n

It may sound surprising that you’re able to buy a new van for\u00a0a price that’s not much higher than the price of\u00a0(say) a one-year old ex-rental van. But\u00a0that’s what happens when manufacturers start\u00a0trying to prop up falling new van registrations<\/a>.<\/p>\n

Auction\u00a0update<\/h2>\n

According to\u00a0Matthew Davock of Manheim Auctions,\u00a0de-fleet volumes\u00a0for vans less than two years old reached record levels in January and February, rising by 14% compared to the same period last year.<\/p>\n

Davock says that\u00a0“the majority is ex daily rental”<\/em> stock and that\u00a0“the challenge here is guide values”<\/em>. He says that anecdotal evidence from buyers suggests that auction guide prices are now close to\u00a0“or even\u00a0in excess of the deals available on new vans”<\/em>.\u00a0Davock says that\u00a0“buyers value this stock according to the legitimate retail deals online”<\/em>. I read this as suggesting that\u00a0the\u00a0prices of nearly-new vans could be falling.<\/p>\n

For\u00a0older vans, aged two-six years, the problem isn’t price, it’s condition.\u00a0Davock says that\u00a0“demand outstrips supply of clean 40-60,000 mile vans”\u00a0<\/em>and that there’s been\u00a0“a noticeable decline in conditions”<\/em> over the last year.<\/p>\n

What’s next?<\/h2>\n

Heavily discounted new van prices are putting pressure on\u00a0the prices of sub two year old vans. At the same time, there’s a shortage of good quality vans\u00a0in the two-to-six year age bracket.<\/p>\n

So assuming supply and demand remain fairly steady, what seems likely to me is that\u00a0used van prices will fall across the board to create a more\u00a0consistent relationship between age, condition and price. Will this happen? Who knows.\u00a0Used van prices have been remarkably resilient over the last few months.<\/p>\n

Manheim’s Davock expects March to be quieter in terms of new volumes as the plate change period slows the supply of de-fleeted vans. Watch this space for more news next month.<\/p>\n","protected":false},"excerpt":{"rendered":"

Heavy discounting on new vans is putting pressure on prices for used vans under two years old, many of which come from the van rental sector.<\/p>\n","protected":false},"author":2,"featured_media":5957,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[8],"tags":[1387,1842,1885],"_links":{"self":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/9711"}],"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=9711"}],"version-history":[{"count":1,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/9711\/revisions"}],"predecessor-version":[{"id":9712,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/9711\/revisions\/9712"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media\/5957"}],"wp:attachment":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media?parent=9711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/categories?post=9711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/tags?post=9711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}