Thursday, July 15 2010
As the average values of fleet & lease vans fell £164 in comparison to May, the average values dropped below £5,000 for the time since the beginning of the year. Even though this is the case, the year-to-year values exceed by £1,150 in June 2010 and almost £1,900 higher in comparison to the market bottom that was reported in December of 2008.
Van insurance comparison site from The Van Insurer
Duncan Ward, who is with BCA Pulse when commenting on the average values of fleet & lease vans made the following comments, as he tried to put the current numbersin the proper when compared to the state of the economy. He appeared to be optimistic about the long term prospects of values increasing. Below is a summerization of Duncan’s coments.
He remarked that while the short term prices have stuttered, the long term forecast is for values to increase again. He maintained that a reduction of new van sales means that there will not be the volumes of used vans available to support what will probably be a rise in demand in 2011 forward as hopefully the economy improves. Ward pointed out that we have already witnessed a shortage of vehicles due to operators extending the leases on vans that they already have and by operating the vehicles longer instead of replacing them given the current economic situation; those vehicles will be older vehicles with more miles on them. Ward concluded that in the coming months, more than likely the average age and mileage of vans that we sell will be higher.