Autorola UK has become the latest company to warn of falling used values in the van market.
The remarketing portal said average used prices had fallen from £11,536 in the final quarter of 2014 to £8,910 in the first quarter of 2015, a decline of £2,626 or 23%.
“The used LCV market seems to have turned a corner in 2015. Prices have started to fall, not because demand has reduced but generally the age and mileage of vehicles coming back onto our online portal have increased,” said Jon Mitchell, sales director Autorola UK.
“We think fleets, in particular rental companies, are now keeping to their extended post-recession replacement cycles, which is also having an impact. The condition of some of the older used stock is also weaker, which is affecting prices,” he added.
Last month BCA said it continued to see rising numbers of used vans in poor condition hitting the market, putting pressure on values.
BCA’s head of commercial vehicles, Duncan Ward, said: “We continue to see rising volumes of poor condition or similar model vans reaching the used market, which is creating some pressure on average values.
Ken Brown, editor with Cap Red Book said the shortage of stock experienced in 2014 were long gone.
“At auctions, generally dealers and professional buyers are being far more discerning over condition which, along with the improved supply situation, is putting downward pressure on prices.
“Overall, Red Book Guide values have been falling since January. Sales conversion rates have slipped so auction re-entries are masking the true level of supply,” he said.
The average age and mileage of used vans being sold on the Autorola UK remarketing portal increased during Q1 2015.
Average age increased by four months from 25 months in Q4 2014 to 29 months in Q1 2015, while average mileages increased from 26,089 to 28,306 miles in the same period, an increase of 2,217 miles.
Click here for analysis in the April issue of Motor Trader.
