The average selling price of a used van has remained above £10,000 for the second consecutive month, at Manheim auctions.
This follows an increasing trend in used van values, first seen in the first four months of 2021, as well as June and July.
In July 2021, Manheim auctions saw the average selling price of a used van at £10,189, with an average age of 61 months and 73,493 miles. Although this represented a slight reduction of £33, compared to the record-breaking result in June, both mileage and age did increase by one month and 2,650 miles respectively.
Matthew Davock, director of Commercial Vehicles, said: “It will come as no surprise to many, that buyers of vans are paying more because of the supply shortages in the used market, which Cox Automotive warned previously would continue until next year, when the supply issue is resolved.
“The overall wholesale return volumes remain a challenge, especially in the fleet/leasing LCV sector, with many who did sell volume in July reporting a reduction of 36-43% compared to traditional month returns. The buzz-word in this sector, as well as many other sectors right now, is ‘customer extensions'."
The figures are especially notable when compared to the same month 12 months ago, and at a pre-pandemic July in 2019. Used vans achieved £2,110 or 26% more compared to July 2020, despite being three months older and having 4,673 more miles. Comparing today’s average LCV selling prices with a pre-pandemic July in 2019, vans are achieving £3,721 or 57% more, with today’s vans being two months older and having 1,886 more miles.
It’s a similar story in the used car market, where prices have reached “new heights”, according to BCA.
The average used car sold for £9,513 at BCA in July, a £330 (3.6%) increase over June’s average figure – itself a record value at the time – and nearly £1,000 (11.7%) ahead of the same month in 2020.
It is the second consecutive month that average used car values have risen above £9,000 and sold values continue to outperform guide price expectations, despite some significant adjustments being made by guide publishers into July.
Stuart Pearson, COO at BCA UK, said: “There is an expectation that new car supply is likely to remain constrained for some time, which suggests that used car demand will continue to drive values up for some months yet. BCA remains committed to providing our customers with the greatest choice of the best used stock in the market, via the most efficient and user friendly online buying process possible.”
Due to the overall global new manufacture challenges and the lack of new vehicle supply and availability in the UK, many customers’ replacement orders have been extended into Q1/Q2 2022. This has become a tough financial dilemma for the fleet and rental sectors.