Wholesale van values ‘back to normal’ in July
Average values in July were down by 7.4% (£306) to £3,850, just £2 less than in April and £9 more than May. When compared with July 2010, average values are 4.7% (£189) lower, and the average age is three months higher and average mileage is up by 5,530 miles.
Notable examples of decreases in average values include Car Derived Vans which fell by 0.7% (£17) to £2,606, Small Panel Vans by 4.1% (£168) to £3,889, Large Panel Vans less than 3.0t by 5.4% (£206) to £3,645, Large Panel Vans of up to 3.0t by 7.9% (£338) to £3,938 and 4x4s which fell by 4.2% (£301) to £6,825.
James Davis, general manager, Commercial Vehicles, Manheim Remarketing said: ‘I have been saying for some time that detailed scrutiny of each market segment is required in order to explain headline price movements in the wholesale van marketplace. In July the month-on-month average age of Small Panel Vans and Large Panel Vans over 3.0t increased significantly by four and five months respectively and average mileage also increased by 3,200 and 8,600 miles.
Contract extensions, which have resulted in escalating maintenance costs and declining reliability for operators, have brought older, harder worked vans to the auction lanes, which has also had an impact on values as well as on conversion rates. With the forthcoming changes to the LEZ fuelling an artificial demand spike until the end of the year, the underlying predicted wholesale van shortage will serve to drive used values higher against a backdrop of a slow recovery in new van registrations.’