Fleet News

New van sales surge benefits used sector

BCA’s UK Business Development Manager – Commercial Vehicles Duncan Ward, commented: ‘With the Society of Motor Manufacturers and Traders (SMMT) recording significant and sustained growth in new commercial vehicle registrations throughout 2004, it might be expected that the used market would come under pressure. But the used market is humming with demand and values for the well-presented van in good condition can be exceptional.

‘Buyers are clearly not turning to new instead of used and – equally – the high volumes of used vans being transacted has not affected the new market. In truth, both markets are enjoying a buoyant time thanks to the healthy and stable economic conditions the UK has seen in recent years.

‘With an active programme of redevelopment and new house building, particularly in the South and East, this is helping to fuel demand for commercials. Low interest rates are also helping small businesses – traditionally a sector that has supported the LCV market.

‘While we are all familiar with the term ‘late year, low mileage’ it is the ‘late year, high mileage’ van that is starting to appear in the used market in greater numbers. With new registration volumes rising, it is clear that some owners are quite happy to buy new, work them hard and sell them young.

‘Consequently this new sector has appeared of vehicles around one year to 18 months old that have probably been worked 24/7 on a shift pattern. At such a rate it is not unusual to see vehicles cram three or five years average mileage into just a few months.

‘With a lack of low mileage, late registered product, it means buyers have no choice but to buy higher mileage examples. Of course, the clean and straight examples find homes easily, but condition is critical.

‘End-users are starting to switch on to these high mileage, nearly-new vans because they can represent great value for money, will be in the latest specification and – of course – sport a recent registration plate.

‘Professional buyers continue to be drawn to anything unusual or rare, and any such examples can make significant values – tippers, cranes and roadside recovery vehicles have been much sought after all year, while seasonal demand has seen fridge vans rise in value in recent weeks. Similarly, buyers all seem to want a panel van in an unusual colour or high specification. We believe a lot of this demand is being driven by our online Commercial Auction View product that is helping buyers to identify and locate these vehicles.

‘The three-year-old contract hire market is as active as ever, with frequent 90% + conversions and even 100% sales being recorded. Professional buyers like the one company name in the book, full service histories and good pedigree that comes with this sector and will buy and buy again. The less-frequent end-user buyer may well gravitate towards the brand name he knows and trusts.

‘While demand is uniformly good through BCA’s network for contract hire vans, there is a real hotspot at our Glasgow centre, where the new LCV sale section has quickly build a loyal buyer-base. Prices and conversion rates have matched and often exceeded anywhere else in the country.’

Demand keeps values high at BCA

Year Make/Model Miles Sold vs CAP
99V Ford Transit 120 SWB 63K £5,900 214.5%
99V LDV Convoy LWB High Loader 110K £3,300 159.0%
99T Mercedes Sprinter 410 LWB Dropside 158K £6,800 146.2%
00V Mercedes Vito 2.2 Tdi 46K £7,100 144.1%
00W Ford Transit 350 MWB 75ps 87K £5,100 143.6%
998 Ford Transit 190 LWB 53K £4,250 141.6%
0202 Ford Courier 1.8 D Van 84K £2,450 140.0%
99S Toyota Hi-Lux 4x4 singe cab pick-up 97K £4,500 139.5%
97 Land Rover Defender 110 76K £8,100 139.0%
01Y Citroen Berlingo 2.0 HDI 120K £2,700 138.4%
0202 Iveco Daily Luton 40K £11,000 138.3%
01Y Vauxhall Movano SWB 51K £4,900 137.0%
01Y Ford Fiesta 1.8 D 58K £2,600 135.0%
00V Mercedes Sprinter 310 LWB 48K £7,300 136.4%

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