Used van values rise

Used LCV values rose significantly in December. There’s a general shortage of stock so this could be a good time to trade in the old van

USED van and light commercial vehicle values rose sharply in December according to the latest figures from autioneers BCA Commercial Pulse.

The average December sale price for LCVs was £4,736 – up by £486 on November, an 11.4% increase with both corporate (fleet and lease) and dealer part-exchange values seeing month-on-month improvements and setting new market high points.

There were two related reasons for the rise:

• There was a shortage of stock in a short trading month, and
• Higher value fleet and lease stock represented a much larger percentage of total sales in December than in November, contributing to the rise.

Average age and mileage both fell during December to 55.9 months and 78,700 miles respectively.

December 2012 was ahead by £461 (10.7%) compared with December 2011, with vehicle age practically static and mileage rising over the period.

BCA’s Duncan Ward told Business Vans: “With decent levels of demand and a shorter trading period, it should come as no surprise that December 2012 would establish a new benchmark value, particularly when factoring in the general lack of stock.

“This became more acute as some vendors chose to hold stock over for the New Year.”

He said the stock shortage was a long-term issue and was unlikely to change until new van volumes picked up significantly.

Ward added: “Overall, 2012 saw steady value growth in the used LCV market, with average values ahead of those seen in 2011. Buyer confidence is fairly fragile and there is a lot of buying to order, but competition for the best-quality vans is driving values up.”

Monthly values in the fleet and lease LCV sector improved sharply in December, rising by £270 (5.2%) to £5,383 – the highest average monthly value on record for corporate LCV stock.

The final quarter of 2012 saw the three highest monthly values on record for fleet and lease LCVs and performance against CAP improved by a point to 100.69%. Retained value against Manufacturer Recommended Price improved to 33.1%, up from 31.9% in November, with average age static and mileage falling slightly.

December 2012 was £385 (7.7%) ahead of the corresponding month in 2011, with average age falling and mileage increasing.

As part of your business van management this could be a good time to think about renewing your vans – you may get a better deal on your old vehicles than you expect.

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