Wholesale van values fall for third successive month in 2011
According to the firm's latest monthly Market Analysis for Vans average age increased by one month to 53 months but average mileage fell by 1,168 to 75,095 miles.
When compared with April 2010, average values are 12.8% (£564) lower, average age is one month lower and average mileage is up by 2,061 miles.
Notable examples of falls in average values of the volume vehicle segments include Car Derived Vans, which fell by 2.3% (£64) to £2,709, Small Panel Vans by 1.3% (£51) to £3,984, Large Panel Vans <3.0t by 7.1% (£276) to £3,612, Large Panel Vans >3.0t by 4.5% (£183) to £3,871 and 4x4s, which fell by 6.7% (£518) to £7,168.
James Davis, general manager, commercial vehicles, Manheim Remarketing, said: 'While year-to-date sold volumes in each month of Q1 have been between 20% and 35% higher than the same period in 2010, in April this figure fell to 16%. This was due in part to the extended holiday period and a consequent fall in retail activity resulting in more challenging auction conversion rates. This hardening of the market is leading traders to change their buying patterns. Instead of stocking a £10,000 van they are focusing on lower price vans that may sell more quickly and are avoiding damaged vehicles that need either too much work or too much time to complete the repairs.'
Davis added: 'The major volume segments are performing differently, with Car Derived Van and Small Panel Van prices holding relatively steady. An increase in volumes of Large Panel Vans, especially when damaged or from specific contracts has caused values to soften. In the case of 4x4s, seasonality combined with volumes in sub three year old product has caused significant volatility. Against this backdrop it is likely that van defleet volumes will now reduce for the remainder of the year and beyond. The used van market is generally robust and any reduction in volumes will then place upward pressure on sale prices.'For more of the latest industry news, click here.