Average used van values holding-up well
Despite a drop in June, average used LCV prices showed a slight recovery in July according to the latest figures from British Car Auctions (BCA), although buyer confidence remains fragile. Values improved by £58 in July to reach £4,229, equivalent to a 1.4 per cent increase over June. Average age fell to just under 57 months, while average mileage rose by nearly 3,000 to 79,400 miles. Year-on-year, July 2012 was ahead by £99 (2.3 per cent) compared to the same month in 2011, despite the average age climbing by over four months (up 8.8 per cent) and average mileage increasing by 10,700 miles, a rise of 15.6 per cent).
“July was a stronger month for average LCV values than June, but buyer confidence remains fairly fragile and there is a reluctance to buy vehicles in poor condition because of the investment required to get these vehicles ready for retail,” said Duncan Ward, BCA’s general manager – commercial vehicles. “Trade buyers are looking for a quick turnaround and often buying to order, rather than speculating on vehicles.”
“However, values remain relatively high because there is a real shortage of good quality, ready-to-retail used vans, which is leading to fierce competition and generally rising values for the best examples reaching the remarketing arena. This stock shortage is a long-term issue and is unlikely to change while new van volumes languish well below pre-recession levels and the wider economic conditions remain so challenging.”
