Demand for used vans pushes prices above £4,000

Demand for light commercial vehicles (LCVs) may have seen van insurance policyholders clamouring to get the best stock at the end of last year.

Figures just released from British Car Auctions (BCA) highlight that December set a record for average LCV values. For the first time, the £4,000 mark was breached, as values for models rose by £100 on November.

Demand for good stock pushed prices up to an average of £4,008, marking a rise of £106 or 2.7 per cent.

At the beginning of 2009, average figures were below £3,000, the firm commented.

Duncan Ward, BCA's general manager of commercial vehicles, said: "End users remained very active in the marketplace and delivery firms expanding capacity in advance of Christmas no doubt buoyed the average price during December.

"Over the year, average values increased by a staggering 37 per cent, reflecting the strong demand for good quality stock."

He went on to say that the conditions look set to remain healthy for the first quarter of this year while supply and demand are well-balanced, but the condition of vehicles will be vital to how well they sell, with damaged vans likely to "struggle for attention".

Earlier this month, BCA announced that used car values also rose in December, following three months of decline. Car insurance policyholders may have been making the most the new model mix of nearly-new vehicles and offset the VAT rate before it rose in January.

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The views expressed within the article are entirely those of Adfero Ltd and are not those of the BGL Group