Advice: Plan for when you sell when choosing your new van - By Mark Cowdell, assistant forecast manager commercial vehicles, CAP Guide
For most self-employed tradesmen running a van the main concern when buying a new vehicle is the initial purchase price.
It’s the same, of course, for a business running a handful of vans.
But there’s another figure that is critically important: residual value. That’s how much the van is worth when you want to sell it (see Jargon Buster).
Differences in the value of secondhand vans vary enormously even between models of the same age and specification.
With today’s intense competition, and falling sales in the secondhand market, independent experts agree that it’s more important than ever to consider all the options for your vehicles.
Think about the driver
We find that driver comfort is an important area to consider when specifying the vehicle. Air conditioning is increasingly popular and brings around £350 at three years. The downside is that it can increase fuel consumption.
An electric pack (mirrors/windows) enhances driver comfort and adds around £75 extra to the vehicle at three years.
Right colour is important
Colour is always an important factor to consider. Corporate livery is a great advertising tool, but values can be lower when you sell if the colour scheme is deemed outside the norm.
Metallic paint in the right colour can also bring a premium of around £300 at three years. However, there is a crossover point when damage to the vehicle becomes more expensive to repair than a solid colour.
Keep it clean!
Condition is one of the most important aspects when valuing a commercial vehicle. The CAP benchmark of average condition gives a negative value for anything deemed poor; and a positive for clean vehicles.
A good, clean van with the right options in the right colour could enhance the end value significantly. And help sell the vehicle quickly.
So if you want to be at the higher end of the residual value ladder when you come to sell your new business van, there are two key things to consider.
Future-proof the value by getting the specification right from the outset; and service it regularly in line with the van maker’s recommendations.
Get the van for the job
Choosing the right van for the job is essential. Consider not only the mileage you cover but the type of driving you do when choosing between petrol or diesel and when selecting the engine size.
For example Vauxhall commercial vehicles offer a variety of factory-bodied vehicles including Lutons, dropsides and tippers. These bodies and conversions are to the same high standard as the chassis or panel van on which they’re based. Such consistency in quality means that they’re likely to hold their value better than a body fitted by a third-party. They also come with the same three-year warranty as the base vehicle.
Think, too, about safety features contained within the basic specification, such as whether there’s a passenger air bag. And look at options like air conditioning that not only make life more comfortable when you’re at the wheel but can add value when you come to sell.
Look after the load area
Ply-lining your van can also help protect the interior and contribute to a higher residual value.
And security devices, such as central locking and engine immobilisers can also add sales appeal, especially as they can contribute to lower insurance premiums.
Finally, and most importantly, is to take care of your van during the time that you run it. Vehicles with a fully documented service history will always command a better price.
Key points to enhance your van’s value
- The right spec: aircon, comfort and convenience features
- Colour: choose carefully and don’t lose out
- Condition: poorly kept vans sell for less
- Ply-lining: protect the interior and protect the value
- Maintenance: keep it regularly serviced
