Upturn in two-tier car-derived van market as used LCV prices rise
By Kyle Lindsay
Thursday, September 12, 2013 - 12:00
DEMAND: Used LCV prices rose by £14 in August
The average value of used light commercial vehicles rose by £14 to £4,076 in August, Manheim’s Market Analysis has reported.
Five of the 11 LCV segments enjoyed an average price uplift, figures showed; most notably for large panel vans over three tonnes and car-derived vans.
Large panel vans saw values rise by £434 to £3,977, while the car derived van sector, responsible for 37% of all Manheim August sales, saw the average selling price rise by £20 to £3,151.
Further analysis identified the continued popularity of car-derived vans, seeing values increase by 15.2%, or £394, year-on-year.
Interestingly, and underlining demand, 41% of all vans sold online by Manheim in August were car-derived vans.
Tim Spencer, Commercial Vehicle Manager at Manheim Remarketing, said: “This strong two tier market for car-derived vans is clear to see.
“Typically the vehicles attract fewer incidences of damage compared to their larger workhorse cousins, as they’re used for different jobs.
“In a seasonally quiet retail market a dealer prefers to stock several lower value vans rather than tie up all their cash-flow in one larger, more expensive van.
“The older they are, the better value they are as a retail proposition to savvy sole traders and SME’s 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 over the past couple of months, mainly due to the seasonal lull but partly because of an increase in the duplicated stock.
“I anticipate the auction market will bounce back in early to mid-September which means that, between now and the end of the year, we should see average selling prices and conversion rates increase.
“That said, it is anyone’s guess how de-fleet volumes will fair for the remainder of the year.”