Used van values continue to strengthen, with Cox Automotive reporting the average selling price of a used van sold at its Manheim auctions in July was over £10,000, for the second consecutive month. This follows an increasing trend in used van values, first seen in the first four months of 2021, as well as June and July, says Cox.
In July, the average selling price of a used van at Manheim auctions was £10,189, with an average age of 61 months and 73,493 miles. Although this represented a slight reduction of £33, compared to the record-breaking result in June, both mileage and age did increase by one month and 2,650 miles respectively.
Compared to July 2020, used vans achieved £2,110 or 26% more, despite being three months older and having 4,673 more miles. Comparing today’s average LCV selling prices with a pre-pandemic July in 2019, vans are achieving £3,721 or 57% more, with today’s vans being two months older and having 1,886 more miles.
Matthew Davock, director of commercial vehicles, said, “It will come as no surprise to many that buyers of vans are paying more because of the supply shortages in the used market, which Cox Automotive warned previously would continue until next year, when the supply issue is resolved.
“The overall wholesale return volumes remain a challenge, especially in the fleet/leasing LCV sector, with many who did sell volume in July reporting a reduction of 36-43% compared to traditional month returns. The buzz-word in this sector, as well as many other sectors right now, is ‘customer extensions’.”
With global new manufacturing challenges and the lack of new vehicle supply and availability in the UK, many customers’ replacement orders have been extended into Q1/Q2 2022, resulting in a financial dilemma for the fleet and rental sectors.
“This is because there’s simply never been a better time to sell a used van” said Davock. “Those lucky enough to be selling used vans are enjoying strong profits, even though their extended product stock has both higher maintenance and higher mileage concerns.”
Remarketing specialists BCA report a similar trend over the last 12 weeks with average LCV values well ahead year-on-year. BCA says values reached the highest point on record in recent weeks, passing £10,000 for the first time in July.
“Buyers continue to compete strongly for the stock on offer” said a BCA spokesperson. “The used LCV sector is experiencing a perfect storm, with the home delivery, courier, self-employed trades and also the leisure vehicle sector experiencing high demand for vehicles.”