Thursday, 17 December 2009

Used Van Prices Continue to Rise

The average resale price of used vans has continued to rise as the new vans market struggles to cope with the recession. The commercial vehicles industry is reliant on small business spending and as such has been effected by the recent economic problems. As new van sales reduce the demand for good quality used vans increases and those who are selling are able to command a higher price.

A recent survey by British Car Auctions has found that the average van is now sold for £3,902 up from £3,858 in October. This is a small rise but it shows an upward trend that is bad news for the commercial vehicles sector.

"Year-on-year values are now ahead by an astounding £1,089 - the biggest margin on record, reflecting the strong performance in November 2009 and just how weak the LCV sector was in November 2008."
Duncan Ward of BCA.

The decrease in new van sales is also providing an increase in van hire revenues. Both long term leases and short term cheap van hire are set to benefit from the stalling market as they arguably offer better value for money than buying a new van. The economic benefits of van rental are clear to anybody who has had an unreliable used van, with van hire the commitment is short and there is no drop in value.

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