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Wholesale used van values remain high in October

Average wholesale used van values increased by just 0.5% (£22) to £4,037 in October, average age increased by one month to 59 months and average mileage went down by 948 miles to 78,723.

Compared with October 2010, average values are 1.3% (£55) lower, average age is seven months higher and average mileage is up by 3,658 miles, according to Manheim Remarketing’s latest monthly van market analysis.

James Davis, director of commercial vehicles, Manheim Remarketing, said: “Here is further proof the wholesale van market is robust and bucking the economic trends and here is further proof.

“Van values are on a par with the same month in 2010, despite average age and mileage being considerably higher.

“I am also seeing evidence that the average value of unacceptable wear and tear damage on this year’s stock is up by just over a third compared with the same period in 2010. It is encouraging that the auction halls and Simulcast screens are packed solid with buyers throughout the country.

“The seasonal uplift for 4x4s is strong on the back of predictions of a long white winter ahead. I do not believe we will see the usual influx of van de-fleet volume in late November/early December so we should see a very buoyant January that serves to kick start a very healthy 2012 wholesale van marketplace.”

Tim Spencer, group auctioneer, commercial vehicles, Manheim Remarketing, said: “In September trade buyers reported that regional differences in retail activity were occurring and this has continued into October.

“Although buyers don’t seem to have an appetite to bid for damaged vehicles or vehicles that require some form of repair there is still definitely a market for these vehicles and as long as the reserve is set realistically then these can be moved on.

“As there is quite a bit of duplicate stock around at present I feel now is definitely the time to be looking at refurbishment as a way of helping these vehicles stand out from the crowd. That extra mop or wheel trim replacement will make enough of a difference to help stimulate buyer activity online and in the halls, attracting more bids and converting more vehicles. Those vendors reluctant to spend money will likely find that bids may not meet their expectations.”

 

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