April’s van sales figures echoed the
trend of the car market, with confidence still in evidence in
the used sector but new registrations continuing to plummet.
While new sales are down 45.6%
for the year to date (see table, right), prices remain buoyant
in the auction halls.
Data from Manheim shows that
the average price paid in its halls during April rose by £247 to
£3,070, although this figure is skewed slightly by a change in
model mix with younger (by two months) and lower mileage (by
1,873 miles) vans going through the halls.
Alex Wright, sales director,
commercial vehicles at Manheim, said: “The continued increase in
wholesale used van prices reflects underlying demand and
attendances are still strong both in the auction halls and
online.
“Supply is matching demand and
even though the macro-economic position would appear to be worse
now than April 2008, we have sold 15% more vans year-on-year.
Although the higher than
expected rise in April was caused partly by an increase in
younger stock, I believe that there is a probability of
continued upward price movement especially if the overall supply
of vans decreases.”
And while BCA’s latest Pulse
report shows that the average price paid for a van during April
dropped by £71, that figure of £3,473 is way ahead of the £2,772
average recorded when the market was in the doldrums back in
December.
Despite the downturn, BCA is
confident that the level of interest in the market will be
maintained well into the second quarter of the year.
Duncan Ward, BCA’s UK business
development manager – commercial vehicles, said: “Having spent
most of 2008 in the doldrums, there is a lot more confidence in
the used
LCV market in 2009 and that is reflected in stronger
bidding, higher conversions and improving prices.
"Despite the small reverse in
April,
LCV values are currently much stronger than those recorded
at the back end of 2008.”
George Alexander, chief
commercial vehicle editor at Glass’s Guide, added: “With
registrations of new commercial vehicles having taken a
nose-dive, yet retail sales in the high street holding firm, the
conclusion has to be that end-user customers are choosing
to buy used vans over new in an attempt to demonstrate their
frugality and caution.
“However, the incentives to buy
a new model have become so great that it is a close-run thing as
to which will actually be the cheapest.
The clamour for late-year LCVs
has had the effect of pushing prices for the nicest examples
ever higher, which could once again tempt dealers to take on a
heavy commitment just as prices fall back to more sustainable
levels.”

