Van prices still falling but September more stable

Overall values for LCV’s continued to fall in September according to the latest data from BCA, but only by three-quarters of one percent. Price falls were seen in the fleet & lease sector, while values rose for nearly-new and part-exchange stock.

The average value for all vans fell by just £24 to £3,190 in September. This suggests the rate of fall may be slowing as previous months had seen falls of £200 and more. The current average values of LCV’s are around £750 behind those recorded earlier in the year.

While values for fleet & lease vans fell by £27 (0.75%) to £3,481, prices for part-exchange and nearly-new vans actually increased over the month. Part-exchange vans increased by £38 (2%) to £2,032 and the average value of nearly-new vans increased by £258 (2.9%) to £9,126 – the second successive monthly increase in this sector.

Duncan Ward , BCA’s UK Business Development Manager – Commercial Vehicles, comments “Although it would be misleading to say the market came back with a vengeance in September, there was an upturn in activity in the auction halls and a fragile confidence returned to the marketplace. Buyers were out in bigger numbers and there was plenty of interest for clean, straight CV’s that were ready to go straight back to work. As a result, van values tended to stabilise and overall there was little price movement between August and September.”

He warned “However, it is far too soon to suggest that values have bottomed out. We are expecting greater volumes of stock in Quarter 4 and that may well impact on price points. Even with the half-point base rate cut, until businesses feel confident to buy vans again, any upturn in the used LCV market will be on hold.”

In particular, the late-year, low mileage market has suffered despite many vehicles now looking exceptional value for money. The lack of finance opportunities as lenders restrict cash flow has meant these vans are simply out of reach for many buyers. The flipside of this is that the budget sector – with vans valued up to £3,000 – is very lively. Professional buyers know these vans are affordable for retail customers who might have the cash in hand or can find alternative funding methods.

Ward added “There are plenty of car-sized vans in the marketplace and quality is the key to success. Vans with proper retail specifications, nicely presented and sensibly valued are selling well. Examples that look a bit shoddy, maybe higher mileage and hard-worked will struggle to reach the higher values. Even the best presented vans still have to look very affordable, and base models or anything too tatty are suffering simply because there is more choice in the market.”

“In the panel van sector, demand for the ‘one-tonne van SWB’ van is reliant on condition and mileage. There’s still interest in clean, low-mileage vans and if the vehicle is in a good specification – preferably with aircon - and in a nice metallic colour then values are strong. Late plate stock has been hardest hit in terms of price performance because such good deals are now available from the manufacturers.”

“The larger 3.5 tonne van sector is very price sensitive, but stock is selling providing vendors are sensible when setting reserves and are prepared to be flexible. Any good bid should be taken seriously in the current market and there is little to be gained by entering vehicles in search of unlikely guide price benchmarks. As a general rule, used buyers generally don’t like the medium wheelbase/low roof configuration as it’s neither one thing nor another and low-powered examples are avoided – whatever the configuration - particularly if the vehicle is going into delivery work.”

“The 4x4 market is struggling to adjust to the less-welcoming environment and the strong values for gleaming nearly-new double-cabs with every bell and whistle are very much a thing of the past. These Lifestyle vehicles are something of a luxury in the current climate. Perhaps the strongest relative performance can be seen in the mid-price sector, where properly worked examples in nice condition look exceptional value for money.”

“Demand is thin for tippers and dropsiders – probably as a result of the turmoil in the housing market - but lutons and boxes find a ready audience providing they are in a clean and tidy condition. We would expect the latter sectors to remain fairly strong in the run up to the festive season.”