The firm’s latest Market Analysis shows that average van values increased by 5.5% between December 2013 and 2014. Compared with December 2013, the average van value at auction increased by £310 in December 2014, highlighting the ongoing strength of the market.
Manheim said that it believes that demand remains “superheated” due to the ongoing impact of a chronic shortage of three to five year old used vans. Continuing a trend first observed in 2013, average selling prices rose despite a significantly higher proportion of older vans being sold.
While there has been an increase in the desireable three to five year old stock, as a percentage of the total mix, between December 2013 and December 2014, there is still a large volume of five year old plus vehicles in the market.
In December 2014, 35% of car derived vans sold were over 60 months old (and had an average age of 88 months), 51% of small panel vans sold were over 60 months (with an average age of 94 months) and 43% of large panel vans over three tonnes were older than 60 months (having an average age of 88 months).
According to Manheim, this confirms that ageing stock still has a large role to play in shaping existing market conditions when demand is growing strongly. It is perhaps of little surprise that the fortunes of new, and thus used, commercial vehicles track the economic performance of UK plc.
Matthew Davock, head of light commercial vehicles at Manheim, commented: ‘As we entered December, trade sentiment was incredibly positive. Vendors were selling right up to Christmas Eve, with many fantastic results being achieved. This is in contrast to the usual seasonal patterns where we'd expect a drop off towards the tail-end of the year; especially with the seasonal de-fleet numbers introducing more volume into the market.
‘The first two weeks of January have rallied and surpassed all expectations. The seasonal de-fleet from daily rental and flexirent fleets has introduced a welcome tranche of late and low product. Attendances have broken all historic records, with the first sale at Colchester attracting 257 physical and 285 online buyers. Many corporate sale sections were enjoying between 90% and 100% conversions.’
‘December's SMMT van registration figures showed that new van sales had grown by 19% year on year to 321,686 units,’ added James Davis, head of CV at Manheim. ‘So, while demonstrating a return to pre-recessionary demand in the new market, the first life users of these vans, who are predominantly corporate, lease and utility businesses, will not realistically de-fleet them until the tail end of this decade.
‘We believe that the natural, pre-recessionary, equilibrium between age categories will not be realised until this point. Happily, with a gradual phased return of these used vans into the wholesale market, there is little to destabilise the existing market.’