Manheim records oldest average van age to date

Manheim’s latest analysis of the UK’s used van market confirms that over half of the 3.8 million vans on Britain’s roads are over seven years of age. 

The report shows that this ageing of the van population is unlikely to end soon, with the average age of vans likely to continue to rise for the foreseeable future.

While the average value of vans at auction fell back to £4,090 in April (down by £645 compared to April 2014), this figure needs to be considered in context. While mileage is relatively flat across all van segments, the average age of vans entering the used market is having a big impact on values achieved at auction.

Indeed, April 2015 saw the largest ever month-on-month increase in average age since reporting began in 2006.

Matthew Davock, head of vans at Manheim, said: “While we’re certainly seeing more older vans at auction in recent months, that’s not necessarily the end of western civilization as we know it. We believe this older van profile is a reflection of the post-recession period and the realisation by businesses that these workhorses, if properly maintained, can run and run.”

“The market slowed for certain stock around Easter, specifically late plate car derived vans, along with duplication and damage. This manifested itself in lower conversion rates – up to 15% lower in April compared to March.

"That said, retail demand clearly improved towards the end of the month and conversion rates increased significantly. The Q1 record new LCV registrations have now largely washed through - in terms of the used van de-fleet volumes they created for the wholesale market. Ex-daily rental and ex-contract hire product is now in short supply in the halls. Older stock is the larger proportion of volumes.

James Davis, head of commercial vehicles at Manheim, added: “I predict de-fleet volumes will now fall as we approach the summer. According to supply and demand used prices are likely to rally; towards January levels but no higher. 

"Care needs to be taken with sub two year old product as the guides see relatively small volumes. Incentives on new vans will drive demand and values in this age bracket. Despite auction volumes of this age profile being relatively small, an average of just over 5% in many segments, the price differential of used versus new must be significant enough to make it a compelling retail proposition.