Light commercial vehicle prices on the rise

Generally the rise in interest rates seems to have had little effect on demand for used vans with the average selling price rising by 9% in the period, from £3,029 during Q3 2006 to £3,318 during Q1 2007. This is the highest average quarterly selling price achieved since Manheim first launched LCV Market Analysis two years ago.

This increase in used van prices is on the back of operators reporting reduced stocking levels of some new vans by manufacturers which has forced them to extend their replacement cycles. Demand for good quality used van stock at Manheim’s seven dedicated commercial vehicle auctions regularly outweighs supply, pushing up prices by a remarkable 14% in the case of the Large Panel Van sector (3.0 tonnes & Under) since October 2006.

Commenting on the market Alex Wright, Sales Director, Commercial Vehicles said: “The used van market is aligned very closely to economic conditions and even though interest rates are rising, most small companies, who predominantly buy used vans, are continuing to flourish. The used van market has been buoyant now for two years and shows no sign of changing, which is good news all round.”

Sector by sector analysis

Car Vans

Q1 07 prices rose by almost 9% to £1,736 over the previous quarter.

The Original Cost New price retained increased by 2% to 22% from Q4 06 to Q1 07

Average mileage climbed to 72,671 miles in Q4 2006, but fell back to 67,467 miles in Q1 07

Average age remained static at 63 months during Q4 06 and Q1 07

Car Derived Vans

Average selling price rose by over 5% to £2,404 during Q4 2006 and remained static in Q1 07

The % of Cost New Price rose 2% to 26% during Q4 06 and fell by 1% to 25% during Q1 07

Prices were stable in Q1 07 even though the sector average age rose from 49 to 51 months over the previous quarter

Average mileage also rose from 57,546 to 61,391 miles in Q1 07

Small Panel Vans

Prices rose by 6% in Q4 06 and Q1 07 to £4,383

The % of Cost New Price retained rose from 34% to 35% in Q1 07

Average age remained static at 47 months during Q4 06 but fell to 44 months in Q1 07

Average mileage fell by 2,164 miles to 69,668 miles during Q4 06 but rose to 71,428 miles in Q1 07

Large Panel Vans of 3.0 Tonnes and Under

Average selling price rose by a remarkable 14% to £3,371from Q4 06 to Q1 07

The Original Cost New Price rose 4% in that period to 26%

Average age fell from 62 to 58 months in the six months to Q1 07

Average mileage fell from 83,730 to 76,088 miles from Q4 06 to Q1 07

Large Panel Vans Greater than 3.0 Tonnes

Average selling price rose by over 9% to £4,197 during Q4 06 and fell slightly to £4,052 during Q1 07

The proportion retained of Original Cost New rose 1% to 21% in Q1 07

Average mileage was 92,567 miles in Q1 07, a fall of 2,460 miles over Q4 06

Average age climbed to 54 months in Q1 07 from 52 months in Q4 06

Tippers and Messing Units

Average selling prices rose in these sectors by 6% for Messing Units, 12% for Single Cab Tippers and 4% for Double Cab Tippers from Q4 06 to Q1 07.

Average mileage of Double Cab Tippers remained static at around 70,000 miles and increased in Messing Units from 83,423 to 95,969 in Q1 07

The average age of Messing Units fell from 62 to 59 months in Q1 07, by 6 months to 62 months for Single Cab Tippers but rose by 3 months to 58 months for the Double Cab models.