P USED PRICES
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Van values continue to rise
kevin.swallowfarbi.co.uk THE VALUES OF second-hand vans at auction continued to rise throughout February, with British Car Auctions (BCA) and Manheim Auctions reporting increases of 3.5% and 4.4% respectively.
At BCA, prices rose £158 to £4585 over its January figure — this represents the fourth consecutive increase.
At Manheim, used values increased by £169 to £4,013, After the used van price recovery in 2009. Duncan Ward. BCA's general manager — CVs, reveals that most commentators expected values to settle in 2010, "hut demand has taken off like a train". He continues: "There is a shortage of just about everything. and whether you are looking for a cheaper budget van, a well-used but tidy ex-lease vehicle or a late-plate model, you are going to run into plenty of competition to secure it.
"That means higher prices, and no real sign that is going to change in the near future:' he says.
Ward identifies increasing confidence in the small business sector, which drives demand in the used van market. "That demand is outstripping supply and keeping prices firm.
"We'd better get used to it, because there is no indication volumes are going to rise much in 2010, and a third continued year of lower new van sales will mean we will have fewer used vans available to the market for some time to come," he says.
Alex Wright, Manheim's sales director. CV, says the continued increase in wholesale values has certainly lasted longer than expected and is a clear indication of strong demand and a relative lack of supply, especially of young, low-mileage vans.
Wright states: These vehicles will remain highly sought after, as extended lead times for delivery of new vans will drive many selfemployed buyers of new vans into the nearly new, used van arena.
"In addition, the decision by many fleets to defer placing replacement vehicle orders means that supply is likely to remain short until Q3.
"No doubt the strength and resilience of the wholesale van market will continue to drive demand," Wright adds.
He remains positive about the wholesale market as the country "embarks on slow and steady economic growth".