Manheim: Used van prices continued to increase in April

Manheim’s latest monthly Market Analysis reports that, at £3,070, the average wholesale used van sale price was up 8.7% (£247) in April compared with March. This is the fourth consecutive monthly increase in average wholesale used van prices following the rise of 5.5% in January, 1.8% in February and 3.6% in March. Although the increase was higher than expected it was caused in part by a change in stock profile and model mix that was both younger (by 2 months) and with lower mileage (by 1,873 miles). Although the underlying trend is for a strengthening of values, when compared with April 2008 average wholesale used van prices were still down by 11.5% (£399) with average age three months lower at 52 months and average mileage 3,987 miles lower at 67,926.

As a result of this higher volume of younger product in the marketplace, the monthly report has been enhanced by an additional analysis of the age profile of most of the baskets of models reported. Examples of the increases in average month-on-month values in April for vehicles more than two years old included: Car Derived Vans up by 15.0% (£271); Small Panel Vans up by 14.6% (£433); Large Panel Vans < 3.0t up by 15.0% (£376) and 4x4s up by 12.0% (£557). In contrast the falls in average month-on-month values in April included: Car Vans down 7.3% (£142); Large Panel Vans > 3.0t down by 1.5% (£41); Tippers down by 6.0% (£215); Messing Units down by 8.3% (£258); Fridges down by 10.9% (£320) and Buses down by 5.7% (£230).

Average month-on-month values for the vehicles of less than two years also experienced mixed fortunes. Examples of increases include: Large Panel Vans 3.0t which rose by 3.3% (£271) and 4x4s which rose by 4.7% (£455). However Car Derived Vans fell by 2.4% (£109) and Small Panel Vans fell by 3.7% (£248).

Commenting on the April report, Alex Wright, Sales Director, Commercial Vehicles, Manheim Auctions said: “The continued increase in wholesale used van prices reflects underlying demand and attendances are still strong both in the auction halls and online. Supply is matching demand and even though the macro-economic position would appear to be worse now than April 2008, we have sold 15% more vans year-on-year. Although the higher than expected rise in April was caused partly by an increase in younger stock, I believe that there is a probability of continued upward price movement especially if the overall supply of vans decreases.”