Supply shortage fuels used van demand

Date: Wednesday, October 17, 2012

Average used van values grew by 3.6% to £4224 in September compared to August, according to BCA’s latest commercial vehicle Pulse Report.

{mosimage}However, values fell short of the average of £4409 reached in September 2011 – the first drop in year-on-year values this year.

Month-on-month prices were up in all three sectors, with fleet and lease rising 3.2% to £5002, part-exchange increasing 6.8% to £2974 and nearly-new hitting £12,006, albeit from very low volumes.

BCA said a shortage of used stock was propping up values.

General manager Duncan Ward said: “We are yet to see any significant uplift in vans from corporate fleet sources and demand is still outstripping supply which is keeping values firm. Trade buyers have to look further afield to secure the stock they need.”

Ward added some buyers were considering older, higher mileage vans if they were in decent condition while some were looking at poorer conditioned vans in lower price brackets.

Meanwhile, Manheim Remarketing mischievously suggested buying a used van could represent a better investment than putting money in the bank.

With interest rates bouncing along below the rate of inflation and average used van values at its auctions rising 1.3% to £4201 month-on-month in September, Manheim said demand remained strong.

Manheim said a chronic shortage of quality vans was affecting the market with volumes from its vendors down 8% year-on-year.

CV boss James Davis said the used market was “struggling to satisfy the insatiable demand from buyers”.

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