Large van drought leaves LCV buyers aiming short

Commercial vehicle buyers are purchasing more car-derived vans and small panel vans, due to a severe lack of larger panel vans in the market.

Latest market analysis from Manheim shows that while the headline price of used vans at auction remained strong in May, volumes of bigger LCVs were significantly down.

Price rose by 9.2% over 12months to £4,741 during May, with the volume of smaller vans up by 8% but larger panel vans down by 14%.

The average price of a five-year-old CDV remained strong at £3,435, a fall of £64 from April, despite a monthly rise in mileage from 70,128 to 71,205.

Similarly, small panel vans saw a rise in selling price of 8.5% to £4,811 in May, due to a fall in average mileage from 87,925 to 78,908.

Sparked by shortage, large van prices peaked at £5,297, prompted by continuing high demand and an average age fall from 62 to 61months.

Matthew Davock, Head of LCV at Manheim, said: “2014 has seen a continuation of the record levels of demand in the used van market.

“We have seen two months of significant year-on-year increases in van de-fleets; these vans have been snapped up by eager buyers looking to secure price range quality stock.

“Interestingly, the mix of vans has changed over the past twelve months, with many more car-derived and small panels vans coming up for sale.

“Conversely, the lower volumes of larger panel vans we’re seeing is, we believe, driving a shift in buyer behaviour toward smaller vehicles.

“Right now, buyers are behaving in a typical seasonal fashion; focusing their attention on the cleanest stock and being far more selective on higher mileage and damaged product.

“I encourage vendors to ensure this stock is presented in its best possible light, with mopping and improved valeting ensuring buyers see them in their best light.

“Sensible reserve setting will ensure realistic conversion rates and days in stock are achieved.”