Second-Hand van prices increased in December | Van Insurance News

Second-Hand van prices increased in December | Van Insurance News

The other day we discussed how the total sales of new commercial vehicles decreased in 2012, which was mainly due to the lack of sales of light commercial vehicles. It seemed that whilst heavier commercial vehicles still did well on the market, people were less inclines to invest in new light commercial vehicles, and today British Car Auctions have released figures that show that the value of second-hand light commercial vehicles actually increased last December. This shows that those wanting to invest in vans are now looking to second hand models instead of brand new ones in order to save money.

British Car Auctions have also associated the increase in second-hand vehicles to increased demand and a lack of stock on the market. BCA General Manager, Duncan Ward said: “With decent levels of demand and a shorter trading period, it should come as no surprise that December 2012 would establish a new benchmark value, particularly when factoring in the general lack of stock in the marketplace. This became more acute as some vendors chose to hold stock over for New Year.”

“Sellers who participated in the market in the run-up to Christmas certainly enjoyed good conversions and strong average values as a result. The stock shortage is a long term issue and is unlikely to change until new van volumes pick up significantly and the economy improves enough to generate a bigger churn or vehicles in the marketplace.”

In December the average price for a light commercial vehicle was £4,736, which is over eleven per cent more than in November. Furthermore, compared to the previous December the average price increased by £461, which is just over ten per cent. It seems that the recession has led to many van drivers to look for better deals on the market for their light commercial vehicles, as well as other products such as commercial vehicle insurance.

Ward has warned though that the increase in market prices may not continue and said: “Currently there appears little on the horizon that is going to change those market conditions, but with the continuing economic pressures and reduces business confidence it remains to be seen if we see the same robust value growth in 2013 that was experienced in 2012.