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Size doesn't matter

22nd December 2005
Page 78
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Page 78, 22nd December 2005 — Size doesn't matter
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Which of the following most accurately describes the problem?

A shortage of supply combined with high demand is producing strong values for car-sized and car-derived vans in the used market.

British Car Auction's Duncan Ward gives his assessment.

They may be the smallest 'vans' in the marketplace and many have no p-eater capacity than the average estate car, yet car-sized vans can be hugely desirable and sought after. Not everybody needs huge carrying capacity or wants a long wheelbase. Remember, most used vans will spend their second working life in a residential setting — car-sized vans don't fill up the drive or block the light from the neighbour's living room.

In fact,the smallest of the lot—the hatchbacks — are generally the most in demand. There are few examples in the market and their scarcity means clean, straight examples can make strong money at auction. Their size means they tend to have light use and are often in better condition at any given mileage than their bigger brethren. Practical smallload carriers are favoured by everyone from florists to electricians as second users These vans are also rated highly by trade and bids reflect this. Buyers don't expect a high specification and are quite happy with a white finish.

Pick of the crop is the Peugeot 206 1.4 HDi, which always attracts the buyers in droves, with three-year-old examples at sensible mileage — 55,000-60,000 — averaging nearly E2,500 at British Car Auction (BCA). The Renault Clio 1.5 DCI 565 is equally scarce. On average. BCA takes more than £2,100 at 80,000 -niles or more for this model, which is equivaent to 113% of CAP The Vauxhall Corsa van is mother rare beast and three-year-old examples igain sell for around £2,500 at 40,000 miles.

The Ford Fiesta van has always been )opular with fleets and second users. Even tigh-mileage examples make strong money, which is testament to the vehicle's robustness. BCA recently sold a number of four-year-old ex-lease Fiesta 1.8TDDi vans for an average of nearly /1,300 at over 125.000 miles. Lateyear, low-mileage examples in this sector are always sought after, and BCA has remarketed a number of 05-registered Ford Fiesta 1.4 TDCis at around £5,500.

Van volumes

With car-sized sans (CSVs), you expect to see higher volumes at auction.This sector has great penetration with fleet operators and leasing companies and the vehicles come back to the used market in large numbers. Buyers are able to choose from many variants, specifications and colours.This is very much the 'price-range' van for a small business looking for a high-quality used vehicle, with a wide choice and good availability from some of the most professional sellers in the business.

With the CSV specification,power becomes much more important — the second user is likely to be a self-employed tradesperson or owner of a small business.The van becomes a travelling billboard for their business so presen n and condition are also important,with -quality trade name deletion essential. tat hig CL)ne side-loading door is a must, and two are ferable.Vans with load-retaining bulkds are favoured as second users are inc easingly safety conscious.The very rare ex mples fitted with a tailgate about 1% wil always make exceptional money.

CA is selling 2003 facelift Berlingos for £3.00 to 0,500 at sensible mileages (60.000 80, ), and even high-mileage examples (10.000 miles plus) will sell for about £2,750. B ,ers prefer the 2.0 HDi to the 1.9 engine. just because it delivers a bit more power. Latepl ted Berlingos are generally outperforming gu de prices in the current market. Pr he Combos remain popular, with prices ranging from £2,200 for a high-mileage D'Ti model to £3,500 for a two-year-old Di at 45,000 miles. Colour and spec remain hugely important. Demand has risen for the Kangoo and nice examples will generally outperform guide prices.

Strong demand

The Transit Connect SWB is now well established in the used market and while prices no longer scale the heights they once did, demand remains strong with 2004registered examples at 20,000 miles selling for up to £5,500. Metallic finishes are much sought after in this sector and can add substantially to the final selling value.

The car-derived van (CDV) will always find a ready audience.The Vauxhall Astra is perennially popular with buyers, and if the Sportive variant with alloys, aircon and a metallic finish is offered, prices can skyrocket. Ford Escort prices have improved notably due to a shortage in the marketplace.The last models from the Royal Mail were snapped up some time ago and as production stopped in 2002. buyers have suddenly realised there are no more to be had. In fact, the Escort van is now one of the most searched-for vehicles on BCA's online Commercial Auction View service www.commercialauctionview.com.

But that sums up auctions in a nutshell scarcity and desirability directly determine value. It's simple market economics. • Noteall prices are ex-VAT