If you own a van fleet, you’ll almost certainly want to know how much it is worth. By knowing what each LCV in your fleet is worth, you can make important decisions such as:
- At what point in its lifecycle you will get the optimal return for selling it
- What shortfall there may be between purchase price and its insured price
- When growing repair and maintenance costs make selling an LCV an economical option
- Whether depreciation costs make buying or leasing future vehicles the most attractive course of action.
So far so good, but the resale value of any van in your fleet will depend on a wide variety of factors. To help you make the right calculations, we cover the most important in this post.
Make and model of your LCVs
Some models of LCV are more popular than others, and thus retain a higher resale value. The simplest way to work out the likely value of any of your vans is to use one of the many online LCV marketplaces such as Parkers. At the time of writing, a 2013 model of these two popular vans are offered at the prices below.
- Mercedes-Benz Sprinter MWB 3.5t 2.1D 313CDI: £6,495 - £15,495 (both +VAT)
- Ford Transit LWB 2.2 TDCi (125ps) 350 High Roof Van RWD: £5,695 - £14,995 (both +VAT)
Age is clearly not everything when it comes to resale value. That’s why the next factor you should take into account is mileage.
The higher the mileage, the lower the value of any van – put simply, high mileage vans cost more to maintain and keep on the road, as well as having a shorter life span left to them. To use the examples listed above, the more expensive of the two Mercedes vans had only 26,392 miles on the clock, compared to the staggering 279,000 miles of the cheaper one. The two Ford LCVs also had two very different mileages – 69,000 for the higher priced van compared to 194,999 miles for the other.
British Car Auctions advises LCV sellers that the specification of any van is key to its resale value. Among the most desirable specifications – and therefore those that attract the best prices– are vans that have:
- Interior ply-lining – which will have protected the van from the inside
- Side-loading doors – one on each side is particularly desirable, especially for city use
- Air conditioning – especially combined with a bulkhead that stops cool air escaping
Remember that most second hand vans are sold to commercial enterprises, so miles-per-gallon is likely to be a key factor in their resale value. If a van is cheaper to run, it will attract a higher resale price.
Colour and condition
It goes without saying that the better the condition of a van, the more you’ll be able to resell it for. Colour, however, has caught many fleet owners out. As a rule, white vans are more in demand – especially if livery hasn’t been applied directly to the paintwork. If your vans do have livery, they will have a higher resale value if it has been applied using a technique that leaves no residual trace.
Emissions are increasingly becoming crucial to the resale values of fleets. With Ultra High Emissions Zones being phased in by 2020 in London and other major cities, it could cost £100 per day to use a non-compliant vehicle after that date. The longer you delay selling, the more this will become an issue for you – the nearer the date is, the less demand there will be for non-compliant vans.
Better security features mean lower insurance premiums as well as less likelihood of theft. Therefore, if your vehicles have them, it can nudge up their resale value.
If you have had your fleet professionally serviced at the correct intervals, then it will help to slow down depreciation. If you have pushed LCVs too far between services, then it will have a negative impact on the price.
As you can see, these are just some of the many factors that can affect the value of your fleet. So many variables can reduce the value of your fleet, and whatever its value you still need to handle the sales process before sourcing new vehicles. This is costly in terms of time and resources.
So if you haven’t calculated an approximate value for your fleet, it’s worth doing so as part of working out its overall lifecycle cost. You may well find that buying your LCVs and selling them on is costing you much more than it would to lease them.
To discover more about the pros and cons or hiring versus buying, why not download our guide?