Van demand patchy in April
Values for Fleet & lease vans rallied in April following two months of decline, says BCA’s latest Pulse Report, but nearly-new and part-exchange values fell in the same period.
Fleet & Lease Values recovered from £4,034 in March to reach £4,126 in April. However, there was pressure in the Nearly-New sector where average values fell by around £700 against March and for Part-Exchange stock where values fell by just over £80, month on month.
Duncan Ward BCA's UK Business Development Manager - Commercial Vehicles commented “The market has slowed in April and despite Fleet & Lease van values rising, there are rising numbers of ex-lease short-, medium- and long-wheel-base vans available and we are seeing more unsold stock than earlier in the year.
He added “Many of these vans are in poor condition and unpopular colours and in the current market buyers are not prepared to go out on a limb for any van requiring repair or refurbishment. While there is still plenty of demand for the best, retail-ready vans at auction, overall, the market is patchy with buyers being particularly cautious.”
Ward added “While nearly-new values fell in April, this is largely due to changing model mix at BCA. Late-plate, low mileage four metre wheelbase vans remain very desirable, although 4x4 double-cabs have experienced some price pressure. “
“While Part-Exchange values have also fallen, some of this is down to the increasing age and mileage of these vans by the time they reach the remarketing sector. It seems users are running vans on that little bit longer before trading them in on another vehicle – mileage has been averaging up to 95,000 this year and this must impact on values.”
Looking at the monthly patterns, there was an immediate price rally in January with values rising on average by nearly £250 in the fleet & lease sector, while average mileage fell by around 1,000 miles at time of remarketing.
However, by February the brakes came on and values faltered. Economic uncertainty, the credit crunch or the impending new registration plate may all have had a part to play as average fleet & lease and part-exchange values fell by just over £100, while nearly-new prices fell by some £1,500 to be on a par with pre-Christmas values.
March saw both nearly-new and part-exchange values recovering, but fleet & lease van values stalled, largely due to average mileages rising to over 67,000 (around 3,500 miles higher than January’s figure).
Ward added “The same remarketing rules of condition, presentation and specification apply whatever the market conditions. The cream always rises to the top and the best vans in the most popular colours will always outperform the average market value. A fully stamped service history can also do wonders for buyer confidence!”
