That’s the finding of Manheim's latest analysis of the UK's used van market, with the April figures showing that the average value of vans at auction fell back to £4,090 (down by £645 compared to April 2014), which the firm attributed to the average age of vans entering the used market.
In fact, April 2015 saw the largest ever month-on-month increase in average age since reporting began in 2006.
The company also said that such ageing of the van population is unlikely to end soon, with the average age of vans likely to continue to rise for the foreseeable future.
Matthew Davock, head of vans at Manheim, said: "While we're certainly seeing more older vans at auction in recent months, that's not necessarily the end of western civilization as we know it. We believe this older van profile is a reflection of the post-recession period and the realisation by businesses that these workhorses, if properly maintained, can run and run! They say 60 is the new 40 where people are concerned and I'd certainly say that this is true of vans too. When it comes to months, 84 is definitely the new 60!"
Looking at the used market in more detail, Manheim's analysis shows that car derived vans, small panel vans and large panel vans (over three tonnes) accounted for 78% of all LCVs sold at Manheim auctions in April.
Commenting on the figures, Matthew Davock said: "The market slowed for certain stock around Easter, specifically late plate car derived vans, along with duplication and damage. This manifested itself in lower conversion rates – up to 15% lower in April compared to March. That said, retail demand clearly improved towards the end of the month and conversion rates increased significantly. The Q1 record new LCV registrations have now largely washed through – in terms of the used van de-fleet volumes they created for the wholesale market. Ex-daily rental and ex-contract hire product is now in short supply in the halls. Older stock is the larger proportion of volumes."
James Davis, head of commercial vehicles at Manheim, added: "I predict de-fleet volumes will now fall as we approach the summer. According to supply and demand used prices are likely to rally; towards January levels but no higher. Care needs to be taken with sub-two year old product as the guides see relatively small volumes. Incentives on new vans will drive demand and values in this age bracket. Despite auction volumes of this age profile being relatively small, an average of just over 5% in many segments, the price differential of used versus new must be significant enough to make it a compelling retail proposition.
"Depending on manufacturer strategies, with EU van registrations growing, lead times could become an issue on the back of so many new models being launched. We last saw this in 2007 when the nearly new 'outgoing model' used market became superheated in the absence of new production."
