Average values of used light commercial vehicles (LCVs) at auction rose slightly in August to £4,076, an increase of £14 from the July figure.
Figures from Manheim’s latest Market Analysis, show that the average selling price increased for five of the 11 LCV segments during August 2013, most notably for large panel vans (over three tonnes) and car-derived vans.
Large panel vans (over three tonnes) saw values rise by £434, to £3,977, while the car derived van sector, which was responsible for 37% of all vehicles sold in August by Manheim, saw the average selling price rise by £20, to £3,151.
Looking at the figures in more detail, the continued popularity of car-derived vans seen values increase by 15.2%, or £394, year on year. Despite an identical average age, average mileage had only decreased by 3,610.
Considering the age of this ever popular sector, 36% of all car-derived vans sold in August had an average age of 86 months whilst 37% of them had an average age of 40 months. Interestingly, and underlining the pent up demand, 41% of all vans sold online by Manheim in August were car-derived vans.
Tim Spencer, commercial vehicle manager at Manheim Remarketing, said: “This strong two tier market for car-derived vans is clear to see.
“Typically the vehicles attract fewer incidences of damage compared to their larger workhorse cousins, as they’re used for different jobs.
“In a seasonally quiet retail market a dealer prefers to stock several lower value vans rather than tie up all their cash-flow in one larger, more expensive van.
“The older they are, the better value they are as a retail proposition to savvy sole traders and SME’s looking at bottom line profitability. The success of this sector has bucked the traditional trend for this time of year at the auctions, with values tending to soften with the effects of holiday season.”
Spencer continued: “Average selling prices and conversion rates have been affected over the past couple of months, mainly due to the seasonal lull but partly because of an increase in the duplicated stock.
“I anticipate the auction market will bounce back in early to mid-September which means that, between now and the end of the year we should see average selling prices and conversion rates increase. That said, it is anyone’s guess how de-fleet volumes will fair for the remainder of the year.”