Wholesale used van values rise year-on-year, despite increase in average age and mileage, reports Manheim.

According to Manheim’s latest monthly barometer of auction activity, despite a month-on-month drop of £273, to £4,062 the average value of light commercial vehicles (LCVs) is £85 (2.1%) higher compared to the same period last year.

Figures from the company’s latest Market Analysis show that the drop in average value of LCVs was in part down to an increase in average mileage and age of the vehicles appearing at auction. With the average age increasing by two months and average mileage jumping by 416, to 62 months and 81,929 respectively, prices at auction were affected. However, when looking at the market as a whole over the past 12 months, values rose, despite an increase in average age of four months.

Looking at the month-on-month trends in more detail, the average selling price increased for three of the 10 segments analysed during July, most notably for tipper models, which were up £1,239 (31%). This significant increase in value can be explained by the considerable decrease in mileage of 6,459 and age by seven months. The analysis also highlights that the car derived van segment softened slightly in July, with a reduction in selling price of only £131, although it remains the largest element of the market, accounting for 34% of the vehicle volume at auction.

Tim Spencer, commercial vehicle manager at Manheim Remarketing, said: "We need to treat this fall in used van values carefully, as the impact of supply and demand affects the market, as well as the usual summertime lull, which has influenced the selling price. There was also a significant influx of large panel vans (less than 3t) from a specific contract in July, which increased the number of vehicles at auction by 25% and was responsible for a decrease in the average selling price of around £1,000. It is also worth noting that the small panel van segment continues to show evidence of contract extensions, which has seen increases in mileage and age of vehicles reaching auctions over the past year.    

"The year-on-year volume variance is significant, as it shows an increase in the number of vehicles entering the auctions over the past few months. This is something that we have not seen for some time and is good news for the wider economy. This means that popular, clean vehicles will still attract interest, but poor quality stock in high volume is likely to remain difficult to sell."

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