Demand continues to slow in May
There continues to be price pressure in the used van market as average values for Fleet & Lease vans have fallen to their lowest point in 2008. According to the latest data from BCA’s Pulse report, Fleet & Lease vans averaged £3,979 in May - the first time values have dipped below £4,000 this year.
Fleet & Lease Values fell from £4,126 in April, a drop of £147 and equivalent to a significant 3.5% drop in a month.
Values fell even more sharply for Part-Exchange stock in May. Values averaged £2,064 for P/X vans last month, a fall of nearly £200 compared to April and equivalent to a decline of 8.3%.
There was also continuing pressure in the Nearly-New sector where average values fell to £10,108, a drop of £87 against April figures. May values are now nearly £1,000 behind those recorded in January 2008.
Duncan Ward BCA's UK Business Development Manager - Commercial Vehicles commented “We reported the market slowing in April and this has continued in May. While demand has softened, there continues to be healthy supply of stock in the market. Unfortunately many of these vans are in poor condition, low specification and unpopular colours and in the current market they are very price sensitive. The end result is that we are seeing more unsold stock than earlier in the year and conversion rates have fallen.”
He added “There is a two-tier market developing, not just in price but in demand. Buyers want fresh stock and first time entered and realistically valued vans are selling well with sales converting in excess of 70%. Re-entered vehicles however are struggling to get the buyer’s attention unless there has been a sensible price adjustment.”
Ward added “It is important that vendors are realistic about the current broad economic conditions in the UK. This is not just seasonality affecting the market, but is a more fundamental re-aligning of prices in the retail and wholesale market. We have enjoyed a buoyant marketplace for many months, but conditions have just got that bit tougher in recent weeks.”
He continued “At the other end of the scale, well-presented ready-to-retail vans continue to make exceptional values, often soaring past guide prices. This is typical of a cautious marketplace where professional buyers are cherry-picking the best vans – everybody wants the same vehicles and buyers will often have to pay over the odds to secure them.”
