Manheim: Used Van Market 2011

Manheim Remarketing reports average used van values fell by 1.3 per cent year-on-year to £4,013 in 2011 compared to 2010. This was despite an increase in average age and mileage of nine months and 11,889 miles respectively, taking the former to 59 months and the latter to 69,816 miles.

Closer inspection of the figures reveal that certain sectors of the market showed a rise in average values. Car-derived vans, for example, climbed 2.0 per cent to £2,611 while small panel vans increased by 9.7 per cent to £4,273 and 4x4s were up an impressive 10.5 per cent at £7,487. Large panel vans over 3.0 tonne, however, fell by 1.8 per cent to £4,197 while tippers had a disastrous year dropping by 25.8 per cent to £4,760.

The significant decline in average tipper values in 2011 can be attributed to a greater than average increase in age — up 25 months to 67 months — and in mileage; by 21,973 up to 69,816 miles.

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“When looking back to December 2010 it is easy to forget the frenzied market conditions we were experiencing at that time,” commented James Davis, director of commercial vehicles at Manheim Remarketing. “In the last quarter of 2010 and the first quarter of 2011 there was a considerable influx of stock from high profile business failures.

“Fast forward a year and, with sold volume down nearly a third, the average age of vans sold by Manheim in December 2011 was nine months higher with nearly 12,000 more miles than in the same month of 2010. It is simply the well observed laws of supply and demand that have conspired to drive average sale values higher. To see values effectively holding level in light of a clearly different product mix is an indictment of the strength of the wholesale van marketplace.

Davis continued: “Never before has such a swing in age and mileage been observed in such a short period. I do, however, urge caution into 2012. I expect conversion rates to bounce back post seasonality, but unless retail demand improves dramatically, wholesale values and demand for duplicate and damaged stock will continue to track at levels observed from the middle of last year. Every bid counts as an opportunity and it is important for vendors to attend as many of their sales as possible to ensure stock is valued against damage, contract usage and market intelligence.”

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