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CAP reveals used van prices are at an “all time high” – but warns it may all be over by Christmas

But the boom in values is likely to falter by the end of the year, say CAP’s commercial vehicle experts.

 The rise in values for used vans was sparked by the collapse in new van sales when Britain fell into recession.

This led to a dramatic reduction in the number of used vans available in the market and as economic recovery began to gather pace, demand quickly outstripped supply.

According to CAP, Since September 2010, the independent benchmark value of a three year old short wheelbase Ford Transit, with 60,000 miles, has rocketed from £4,800 to £7,100 – an increase of 48%.

Commenting on the figures, CAP’s commercial vehicle forecast values expert, Tim Cattlin, said: ‘Nobody in the industry, including ourselves, anticipated the rate at which demand has increased.

‘Economic recovery has therefore unleashed serious pent up demand into the auction halls and onto the trader’s pitch.’

Now Cattlin believes the recovery of new van registrations in 2011 spells an impending end to the rise in van values as early as the end of 2014. A growing number of these vehicles will begin to return to the used market and help to rebalance supply and demand.

‘We believe the market for used light commercial vehicles will remain buoyant for the next few months but values will begin to ease later in the year.’ he added.

‘Quite how pronounced this softening will be, remains to be seen, but a pivotal point may well be the typically quiet period over Christmas. We will therefore be watching particularly carefully to see if the normally strong recovery in January is as pronounced as usual.’

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