Van values stabilise in October
The firm's latest monthly Market Analysis for Vans reveals that at £4,092, average wholesale used van values fell by just 0.8% (£34) following an increase of 3.2% (£127) in September.
This levelling off will have been influenced by an increase of one month in average age to 52 months plus a 4,506 mile increase in average mileage to 75,065 miles. The firm says that a further sign of the market's underlying strength is the fact that average values are 14.0% (£502) higher than the same period last year.
Examples of falls in values in October include Car Derived Vans down 1.2% (£31) to £2,699, Small Panel Vans down 2.5% (£112) to £4,318, Large Panel Vans < 3.0t down 3.3% (£133) to £3,837 and Large Panel Vans > 3.0t down 1.5% (£67) to £4,351. Surprisingly 4x4s also fell by 4.0% (£292) to £7,001 but Tippers saw an increase of 16.1% (£826) to £5,948.
James Davis, general manager, commercial vehicles, Manheim Remarketing, said: 'Commercial vehicles are the life blood of many UK businesses and in tougher economic times a used van offers better value and a lower financial outlay for an SME operator than a new van. With used van values £500 or 14% higher than the same month in 2009 there is clear evidence that underlying retail demand has kept pace with supply.
'In October we sold 19% more vans year-on-year and in September that figure was 23%. However supply issues have to be considered in context of the interdependent relationships between duplicate models, contract usage, incidence of damage, seasonal factors and thus overall values achieved. Although any increase in supply could lead to a softening of values and conversion rates, there is little current evidence that demand will tail off significantly.'