Online Bidding and Stock Shortages Continue to Drive up Used Van Prices
According to Manheim’s Market Analysis, September 2014 saw a 10.3% increase in used prices over the same period in 2013. Prices at auction went up on average £438, despite the fact that the average van age went up by one month and mileage rose by 263 miles. September pricing remained on a par with August.
When comparing the selling price of the used van to its original price new, the Manheim report indicated that vans were selling at 28% of their original value. This reflects an increase over last year, when the number hit just 26%. Small van prices grew by 14.8 percent while the larger panel van prices increased 10.8%. Manheim’s head of light commercial vehicles, Matthew Davock, sees no immediate end in sight to the price increases. “The market performance has remained very healthy in the recent weeks, but stock shortages have remained a concern, which will maintain demand and prices. Vendors are typically enjoying conversion rates of 80% plus and when stock profile matches buyer requirements 100% sales are the norm, even with damaged product being snapped up in the absence of cleaner vans. We don’t see any significant changes in volume trends, which will only contribute towards a continued strong marketplace for the remainder of the year.”
In addition to shortages in available stock, Davock says that the online system of bidding seems to be driving purchase prices higher.