January used van values show slight rise

Figures from auction specialist Manheim Remarketing reveal that average used van values rose £46 to £4,059 — an increase of 1.1 per cent — in January 2012 compared with the previous month. Overall average age increased by two months to 61 months, but average mileage fell 567 miles to 81,878. Compared with January 2011 average values were 1.9 per cent (£79) lower, average age was 11 months higher and mileage increased to 8,249.

Volume vehicle segments showed little movement in average value during January 2012, but Tippers were up 4.7 per cent (£4,985) and Box Vans/Lutons rose 7.0 per cent (£6,261). This was despite an increase in average age of four and 17 months respectively.

“The real story in the wholesale van market has been the significant shift in stock profile seen over the last 12 months,” said James Davis, director of commercial vehicles at Manheim Remarketing. “Not since Manheim began reporting some seven years ago has such a shift been observed. This January the average age of vans sold by Manheim was nearly a full year older than the same month in 2011, mileage was up by just over 11 per cent yet average sale values were only down by £79. As predicted, the wholesale market has seen an improvement in conversion rates and bid values in January. Buyers are attending in large numbers online and in the hall. Manheim’s auction centres are still breaking online activity and attendance records. But large attendances don’t always translate into strong sale performances. Perhaps unsurprisingly it is the make-up of each sale that determines that.”

manheim-values-jan-2012

Three-Tier Market

“For the first time there is now evidence of a three tier market,” commented Davis. “There are significant volumes of older higher mileage vehicles and there is also good availability of sub-three year product as daily rental fleets experience their typical seasonal replacement and de-fleet activity. In addition there are the popular mid range, average age/mileage vehicles, which because of increasingly short supply are attracting intense bidding from buyers eager to get their hands on these vehicles.

"Duplicate stock continues to require strategic placement and despite slower retail activity, will readily find customers although buyers are very sensitive to damage. Those vendors that factor in vehicle condition and attend sales to maximise every bid opportunity are enjoying the strongest results. The strength of the retail van market will ultimately determine any further improvement in the wholesale arena.”