Used Van Values Continue to Climb
Fleet managers considering removing used vans from their existing fleets got another dose of good news, as Manheim auctions released their latest market analysis for December of 2013. Across the board, the auctioneer indicates that the value of used vans continues to climb despite the fact that the average age of the vans available are older and the mileage is higher.
The numbers released show a marked difference over those from December 2013. The values of the used vans is 5.5% higher than in the previous year, though the average age of the vans went up from 60 months to 63 months.
According to the head of commercial vehicles at Manheim, James Davis, the increased value being seen in the used market is an indication of the dearth of available vans on the market, as well as the overall optimism that business will be improving. The vans that are coming onto the market are from the year 2008, when the economy was struggling and companies were not investing in new vehicles – this accounts for the fact that so few vehicles are coming available.
According to Davis, “The wholesale CV market is highly sensitive to supply and it has always been challenging to predict de-fleet volumes. Indeed, it is the scarcity of good stock coming up for auction now, which can be traced back to the recession of 2008, which is largely responsible for current market conditions.”
For those companies that had the funds available in 2008 and have vans that they are ready to de-fleet, the market conditions could not be better.