SECONDHAND car-derived vans and large panel vans were in demand last month.
According to Manheim Remarketing, the average value of large panel vans (over three tonnes) increased by £434 to £3977 in August, while car-derived vans experienced a rise in average selling price of £20 to £3151.
The car-derived sector made up 37% of all vehicles sold over the month by Manheim. Overall, average selling prices increased in five of the 11 LCV segments.
The continuing popularity of car-derived vans saw values increase by 15.2%, or £394, year on year. And despite the average age being identical, average mileage had decreased by only 3610.
Taking the age of this ever popular sector into account, 36% of all car-derived vans sold in August had an average age of 86 months; 37% of them had an average age of 40 months. Underscoring pent-up demand, 41% of all vans sold online by Manheim in August were car-derived models.
Manheim Remarketing commercial vehicle manager Tim Spencer told Business Vans that there was a strong two-tier market for car-derived vans.
“Typically the vehicles attract fewer incidences of damage compared to their larger workhorse cousins, as they’re used for different jobs.”
He said that dealers preferred to stock several lower-value vans rather than tie up their cashflow in one larger, more expensive van during a seasonally quiet retail market.
He explained: “The older they are, the better value they are as a business van to savvy sole traders and SMEs looking at bottom-line profitability.
“The success of this sector has bucked the traditional trend for this time of year at the auctions, with values tending to soften with the effects of holiday season.”
Average selling prices and conversion rates have been affected during the past couple of months, mainly because of the seasonal lull although partly because of an increase in duplicated stock.
Spencer said he believed the auction market would bounce back in early to mid-September, so that between now and the end of the year, average selling prices and conversion rates should increase.
But he added that is was anyone’s guess how de-fleet volumes would fair for the remainder of the year.