Fleet News

Fleets told: Ditch vans before 100k

FLEETS disposing of light commercial vehicles are being warned that mileage is a critical factor in maximising residual values for vans, regardless of the durability and condition of the vehicle.

A vehicle with more than 100,000 miles on the clock has only a slim chance of achieving a decent price no matter how clean and reliable it is, according to EurotaxGlass’s, which publishes Glass’s Guide to Commercial Vehicles.

It says the best prices are saved for vans with less than 45,000 miles behind them. George Alexander, chief commercial vehicle editor at EurotaxGlass’s, said: ‘Retail business is still attainable on the best panel vans up to 100,000 miles, but above this point the problems really start.

‘For a franchised dealer active in the used lightweight commercials market, even this suggested upper limit would be laughable.

‘It is simply not worth the risk to sell anything other than late-year A1 stock that has not covered any real distance.’

This means that although some vans can easily cover 200,000 miles, savvy operators will ditch them far earlier.

Alexander said: ‘Little will change until legislation, coupled with financial incentives, favour more sensible all-life cost considerations and take account of recycling requirements.

‘Then, keeping vehicles in harness for perhaps five years with very high mileage could make sense.’

David Fildes, CAP Motor Research’s editor for light commercial vehicles, agreed that mileage is a critical factor at disposal time but said the van’s condition was still the most important factor.

He said: ‘Up to 60,000 miles is OK, but beyond 100,000 miles very few people want to buy them.

‘The condition of a vehicle is still the most important factor in buying a used van, but mileage is a close second.’

Earlier this year, fleets were told that independent LCV dealers have become far more selective in the type and quality of used vehicles they take into stock (Fleet NewsNet, June 23).

Analysts said this was because of an increase in the number of used vans on offer, as well stiff competition from manufacturer used vehicle schemes where generally only higher quality stock is presented.

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