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A shortage of used light commercials is driving up wholesale demand for vans aged over five years old, according to new research by Manheim.
The auction house’s latest Market Analysis provides evidence of the most sizeable shift towards older vans seen in the used market since reporting began in 2006.
This February’s sales data highlights a move in the wholesale market towards light commercials aged five years and over. Manheim reported it has never seen such a high proportion, nearly half, of all used vans in the market reaching the seven year mark.
Looking at individual van segments, small panel vans between two and three years of age are attracting premium prices, achieving on average £7,522 (43% of their original price) at auction. Manheim’s analysis confirms there is a chronic shortage of vans in the three to five year age bracket, although this is likely to improve as new stock feeds into the used market during the next few years.
At the other end of the age spectrum, older vans are still attracting strong bids with between 30% and 50% of all vehicles sold at auction last month aged over seven years of age.
Despite this ageing profile, average selling price has risen year-on-year by £349 or 8%. This trend is attributed to the significant fall in new van sales in 2008/2009 and the subsequent shortage of stock in the used wholesale market.
Matthew Davock, head of LCV at Manheim, said: “These older vans are, without doubt, the tail end of extensions and deferred replacement programmes resulting from the economic downturn. Anything sub four years in auction today is seeing significant interest, from both online and physical buyers. Fewer than three in 10 vans sold in February fell into this age bracket.
“This is not bad news for the market. Older and higher mileage vans will always find homes as they are at an attractive price point and represent excellent value. Mileage is now seemingly less of a mental barrier in retail buyers’ minds; this is likely against a backdrop of modern reliability and a comprehensive maintenance history.”