Used van values get stronger

"Increasing confidence in the small business sector is driving demand in the used van market. Used van values have increased by a substantial £727." Duncan Ward, BCA

USED business van values are continuing to get stronger – that’s the good news from BCA for small business van operators.

The leading UK auction house reported that used LCV market set yet another record average value of £4,585 in February, an increase of £158 over January’s figure of £4,427.

According to BCA, this represents the fourth consecutive month to set record values, a run that has seen average values improve by a significant £727 – equivalent to an 18.8% increase over the period. The record value previous to the current period - set in January 2008 – stood for 22 months before falling.

In all, year on year values have increased by £1,468, BCA says, meaning that used values have recovered by 47% over the past 12 months.

“After the recovery seen in used LCV prices in 2009, most market watchers might have expected values to settle in 2010, but demand has taken off like a train,” commented Duncan Ward, BCA’s general manager for commercial vehicles.

“Put simply, there is a shortage of just about everything and whether you are looking for a cheaper budget van, a well-used but tidy ex-lease vehicle or a late-plate model, you are going to run into plenty of competition to secure it. And that means higher prices and no real sign that is going to change in the near future.”

Small business market gaining confidence

Ward continued: “There is obviously increasing confidence in the small business sector which drives the demand in the used van market. That demand is outstripping supply and keeping prices firm. And we better get used to it, because there is no indication volumes are going to rise much in 2010, and a third continued year of lower new van sales will mean we will have fewer used vans available to the market for some time to come.”

Mr Ward added: “The effect will travel through the market like a ripple and it will cause a relative shortage within certain age profiles of vans in the used market going forward. In simple terms, it means in 2012 there will be a shortage of three-year-old vans. That will continue to be the case until the new van market recovers some of the volume it has lost. It should also mean plenty of demand from buyers for the stock that is available and relatively firm average values going forward.”