UK economy strikes used LCV market
19 August 2008
Van values are falling month after month as the financial state of the nation continues to make itself felt.
Nearly new models, from the likes of daily rental firms and van makers, fell by more than £1000 to an average £9052 between May and June of this year, according to the latest figures from auction giant BCA. Fleet and leasing-sourced vehicles plunged by £147 to £3827, a drop coming off the back of another £152 in May.
Fleet and leasing vans spent most of 2007 increasing in value, passing the £4000 average late last year. That trend reversed earlier in 2008, and has been heading downwards for the past few months.
"Volumes have held up well, but there's been a fall-off in demand - buyers are buying fewer vans," said a BCA spokesman.
"For most of 2007, and in 2006, second-hand vans were highly desirable as there were issues with stocks for new vans. This is the first slow-up in 24 months."
BCA's business development manager Duncan Ward said well-presented ready-to-retail vehicles are still attracting strong bidding, but "unless buyers already have a home for the van, there may be some hesitance in bidding much above the £7000 mark".
But one area of the van market is actually growing, despite the economic tough conditions. "With fuel prices at record levels we have seen a resurgence in values of dual-fuel petrol/LPG vehicles," said Ward. "Values on the few available have been firming - particularly in the South and Home Counties, but it's fair to say there has been a big change in demand in recent months."