Used Van Sales Get Big Boost
According to the latest report from the commercial vehicle team at Manheim, recent developments are indicating tremendous growth in the market for older vans. The activity that was reflected in the group’s latest Market Analysis reflects the biggest shift since 2006 when the organization first started tracking used van sales.
The report indicates a dramatic increase in the purchase of light commercial vehicles that are at least five years old, with almost half of the used vans sold in February being seven years old. The pricing on small panel vans that are between two and three years old has been averaging approximately 43% of original price at £7,522. Manheim also indicates that they are anticipating an influx of three to five year old vehicles in the coming years, which will make up for the current shortfall in that bracket.
The bidding has been notably strong at the auctions for older vans, with this year’s selling price going at an average of £349 over vans of the same age last year. This reflects an 8% increase, which analysts attribute to the fact that new van sales dropped during the years the seven year old vans were manufactured, thus creating a shortage today.
According to Matthew Davock, head of LCV at Manheim, “This is not bad news for the market. Older and higher mileage vans will always find homes as they are at an attractive price point and represent excellent value. Mileage is now seemingly less of a mental barrier in retail buyers’ minds; this is likely against a backdrop of modern reliability and a comprehensive maintenance history.”