The wholesale used van market continues to perform strongly despite ‘flat-lining’ UK economic growth, says Manheim Remarketing.
With new vehicle sales slow to recover, it believes the value and choice offered in the used van arena presents an interesting opportunity.
“In 2011 the used van market has performed beyond expectations. Values remain stable but this must be seen in the light of a year-on-year volume increases of 30%,” explains James Davis, general manager, Commercial Vehicles, Manheim Remarketing.
“This volume spike has been driven by consolidation in the daily rental sector and other industries. The good news is that these vehicles are, in the main, the right specification, badge and in good condition. There has been some model duplication which, when combined with higher mileage and levels of damage, requires the setting of realistic initial reserve prices to ensure a swift sale.”
Manheim reports that demand from physical and online buyers in Q1 remained strong with buyers having to travel further, or to log onto more ‘Simulcasted’ sales, in order to secure the necessary stock.
“Late plate, nearly new vans are keenly fought over, with buyers recognising the value they offer compared with new vehicles,” says Davis.
“These low mileage vans offer a considerable saving when compared with list price, with the added bonus of immediate availability as they are not subject to manufacturer lead times. Small volume segments, such as Lutons and Tippers, are strong performers and an increasing number of utility fleets are replacing vehicles so there is a healthy level of older vehicles catering for a variety of budgets. Anything a little different with additional specification is, due to its rarity, capable of making significantly over the guide price.”
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