Manheim Auctions warning on messing unit values
A survey of messing unit buyers recently conducted by Manheim Auctions provides vendors with a most compelling insight into the used market for this segment. The survey reveals that while many vendors believe messing units to be more valuable than their panel van equivalent, buyers do not agree.
Although average sale prices of messing units (also known as welfare units) were actually tracking higher than panel vans above 3t for two quarters in 2007 (the first time this was ever seen) this year they have dropped back below. Highlighting the danger of setting residual values based on current market performance it is often a common misconception that, due to their higher capital costs resulting from the additional cost of conversion, they are worth more than the equivalent panel van. The additional financial outlay for enhanced specifications and equipment levels needed to meet the duty of care and corporate responsibility in their first life is rarely taken into consideration by second hand buyers.
Manheim Auctions’ buyers advise that folding rear facing seats do not add value as they are not favoured by second hand retail buyers. The optimum seating configuration is a single row of three forward facing seats located behind the driver and twin passenger seats. Ideally these three seats then have a further row of two front facing seats behind. In this last configuration the van would seat seven passengers plus the driver. Fitting two rows of three seats behind the driver would take the capacity to nine seats so overlapping into the minibus territory with subsequent insurance, driver licensing and digital tachograph requirements.
Beyond seating, the additional ancillary equipment largely draws minimal financial uplift from buyers. Microwave ovens, which usually require the engine to be running to power the unit, water heating and washing units make little difference to the vehicle’s value and in many cases retail buyers ask for them to be removed. Tables, contract specific shelving, storage compartments and partitioning also add little value.
Factory or quality aftermarket bonded windows are now seen as a “must” when retailing used messing units. These bonded windows are in stark contrast to the more old fashioned rubber seamed window units. It is not unusual to see many examples where corrosion has begun to take hold of the metal apertures behind the rubber seals.
In contrast, the independent diesel powered rear cabin heater can add as much as £250 to prices and, according to Manheim’s buyers, is definitely a key selling feature. If buyers are confident that the second and subsequent usage of these vehicles will require the same levels of specifications and equipment levels then the vans will attract a price premium.
Alex Wright, Sales Director, Commercial Vehicles, Manheim Auctions said: “In the majority of cases messing units are operated in their first life by infrastructure organisations in road, rail and civil engineering industries. They take groups of workers to site and then ‘house’ them during the day or the shift. Often these vans are left standing during the day, engines running, so mileage is not a direct indicator of engine usage.
It used to be commonplace, when following a panel van with rear windows in the doors, to see occupants sat or crouched within the payload area on their way to or from a site. Messing vans, like crewcab vans, have increased in popularity in second life as occupants can now be correctly and legally seated. There are an increasing number appearing in non factory, corporate fleet colours but white remains most popular with buyers. Due to the dual role of messing units their “people payload” can determine specific types of damage, in extreme cases vandalism of internal fittings and even graffiti. Low speed manoeuvring damage (likely from posts, gates, barriers etc) is commonplace and when left unrepaired can combine to create a poorly presented asset. More than ever condition is crucial in achieving the highest returns and our online and physical buyer bases will fight over the cleanest examples.”