Demand for used vans continues to grow

Levels of demand for light commercial vans continued to grow towards the end of last year.

According to a new report released by the British Car Auctions (BCA) small businesses and sole-traders continued to compete strongly for commercial stock in December 2009, more than £100 was added to the average price of a van and the £4,000 mark was broken for the first time on record.

The BCA stated that van values increased by 37% over 2009, indicating the strength of demand last year, as well as how far prices had collapsed over 2008.

The report shows that average values went from £3,902 to £4,008 by the end of the month, which is the equivalent of a 2.6% increase in value.

Duncan Ward, spokesman for the BCA, said that last year's van market appears to have recovered any lost ground in 2008.

Mr Ward went on to say:

“With small businesses being significant buyers in the used commercial market, this suggests that confidence is returning to the SME sector and reflects the news that the UK officially came out of recession in the final quarter of 2009.”

Alex Wright, the Sales Director at Manheim auction house, has also said that the size and momentum of price movement over the past 18 months in the used-van market has been extraordinary.

However, while he said that the outlook over 2010 for the market remains upbeat, he warned that new commercial vehicle sales will still take some time to recover.