The real cost of damage when LCV’s are sold is rising according to new data released by leading vehicle auction company British Car Auctions (BCA)
Figures outlining the total average cost of damage on LCVs inspected by BCA has risen by 18 per cent year-on-year, from £683 to £808 on average, with some examples of damage breaking the £2,000 barrier.
This is in spite of the fact that average age has remained static at 54 months, and average mileage has only risen from 71K to 73K over the same period.
Duncan Ward BCA’s General Manager – Commercial Vehicles commented “This is a worrying trend that cannot be blamed wholly on contract extensions. Far too many vehicles are entering the remarketing chain with increasingly high levels of damage which reduces their desirability and value to used buyers – even when supply is restricted. We are seeing a widening two-tier market, where the scarce good condition vans are becoming even more sought after, while damaged, poorly presented vehicles run the risk of being overlooked completely.”
He added “Similarly, drivers should be aware that it is their responsibility to report damage when it occurs. Drivers should also be encouraged to keep the cab space in good order, because replacing interior trim, seats and headlining fabric is prohibitively expensive – again accidents will happen, but there is no excuse for negligence.”
Ward added “The value of a mid-term inspection as a management control cannot be over-emphasised. If a van is inspected two or three times during a typical four year working life it will identify damage that could be rectified immediately, rather than waiting for this to be picked up at defleet time, when the cost to repair may have risen many times over.”
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Six step plan to managing in-service damage:
- Driver Training
- Driver logs and damage reporting
- Stop the first dent
- Rectify damage as it happens
- Introduce annual costed independent inspections
- Invest in meeting industry best practice standards