Used vans fetching more money despite being older and with more mileage

Year-on-year comparisons with vans sold in July 2011 show that values have increased despite having more mileage on the clock and being older compared, says Manheim Remarketing.

Comparative figures between July 2012 and July 2011 show the average resale price of vans rose £124 (3.4%). James Davis, director of commercial vehicles at Manheim Remarketing, says the July market report supports the view that the used van market remains buoyant overall.

“Car derived van values are up £154, despite being two months older; smaller panel vans have also increased their value by £101, despite being three months older and having over 6,000 more miles on the clock compared to the average vehicle sold at auction last year,” he says.

The small panel van segment remains very popular with small-to-medium-sized-enterprises, he says, and is often cited as a good barometer of business confidence. He continues: “In times of uncertainty and austerity, savvy businesses are more likely to see the value in buying a well maintained ‘workhorse’ as opposed to the cost of a brand new vehicle. There is no doubt that vehicles are being run longer in this sector by first life operators so any headline analysis must consider age and mileage profile.”

Values have reduced slightly on large panel vans (over 3.0 tonnes) in 12 months by £43 as well as the general trend of increasing in age by three months and 15,000 miles added, on average. This created the highest average mileage in July 2012 of 108,238 miles; the highest seen since the Manheim Monthly Market Analysis report was first published back in 2006.

“It’s well worth pointing out that this is the true workhorse van segment on UK roads and continues to be popular at auction. Sure, the headline value of large panel vans may have decreased marginally, but remember these vans are typically several months older and displaying much higher miles, looking at the year-on-year trend,” he adds.

The current used van market is still blighted by damaged and duplicate models across the major van segments with dealers preferring not to tie up precious cash flow without an order or to pad out the forecourt. “Subsequently, conversion rates have softened in line with seasonality. Dealer sentiment would indicate that they expect the summertime retail lull to continue through until September when historically the market rallies,” he concludes.