Used van prices still increasing in UK
According to the latest Market Analysis from Manheim, average LCV values increased by 5.5% between December 2013 and 2014. Compared with December 2013, the average LCV value at auction increased by £310 in December 2014, highlighting the ongoing strength of the market.
Manheim believes that demand remains superheated due to the ongoing impact of a chronic shortage of three to five year old used LCVs. Continuing a trend first observed in 2013, average selling prices rose despite a significantly higher proportion of older LCVs being sold.
While there has been an increase in the desirable three to five year old stock as a percentage of the total mix between December 2013 and December 2014, the resale company reports, there is still a large volume of five year old plus vehicles in the market. In December 2014, 35% of car-derived vans sold were over 60 months old (and had an average age of 88 months), 51% of small panel LCVs sold were over 60 months (with an average age of 94 months) and 43% of large panel LCVs over three tonnes were older than 60 months (having an average age of 88 months).
Matthew Davock, head of light commercial vehicles at Manheim, comments: “As we entered December, trade sentiment was incredibly positive. Vendors were selling right up to Christmas Eve, with many fantastic results being achieved. This is in contrast to the usual seasonal patterns where we'd expect a drop off towards the tail-end of the year; especially with the seasonal de-fleet numbers introducing more volume into the market. The first two weeks of January have rallied and surpassed all expectations. The seasonal de-fleet from daily rental and flexi-rent fleets has introduced a welcome tranche of late and low mileage product”.