7 May 2014 - BCA Commercial Pulse: Used LCV values fall back in April as volumes rise - British Car Auctions
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7 May 2014 - BCA Commercial Pulse: Used LCV values fall back in April as volumes rise



Average used LCV values fell back in April - for the first time since late last year - declining by 2.9% compared to March.  Despite this, April’s average value of £5,395 for commercial vehicles was the second highest on record since BCA Pulse began reporting in 2005.

Every sector saw a fall in value as Fleet & Lease LCV values declined by £314 (4.4%), P/X van values fell by £162 (4.3%) and nearly-new vans posted a fall of £2,152 (14.1%) - although this latter figure will have been as a result of changing model mix in a very low volume sector.

Values for all light commercial vehicles decreased to £5,395 in April – a fall of £162 (2.9%) compared to March’s average value (which was the highest since Pulse began reporting in 2005).   Volumes rose during April with a greater percentage of Fleet & Lease stock sold, resulting in a richer mix of vehicles in the marketplace.

Year-on-year values remain ahead, up by £397 (7.9%) over the twelve month period.  Compared to a year ago, age is static at 58 months, while mileage has increased by around 3,000 miles on average over the same period.  Average CAP performance improved by half a point compared to April 2013.



Year-on-year table: All vans


BCA’s General Manager – Commercial Vehicles, Duncan Ward, commented "Although April’s values were the second best on record and are significantly higher than the same period last year, the market slowed over the extended Easter and May Bank Holiday period and sale conversion rates have fallen back.  Volumes have risen quite noticeably, meaning there is more choice for buyers and this has impacted on average values.”

“We are now moving into what has traditionally been a time of slower demand and we may see some seasonal pressures on values over the coming three to four months.  We should expect retail-ready LCVs to be very desirable with values to match, but vehicles presented with damage, in poor colours or with excessive mileage will need to be realistically valued if they are to sell first time.  In particular, the double cab market has seen values fall sharply, largely as a result of the rising volumes of basic spec vehicles combined with a softening of demand as the summer months approach.”

He added “There are signs that sellers are being more pragmatic about values, as performance against CAP declined noticeably compared to March.  Dealer part-exchange vehicles saw performance fall around four points down to 102.0%, with corporate vehicles falling by two points to 100.5%.”

Values for fleet and lease LCVs declined by £314 (4.4%) in April to £6,735, with both CAP performance and retained value against Manufacturer Recommended Price declining.   Year-on-year, values were up by £564 (9.1%), although performance against CAP was slightly down on 2013.  



Year-on-year table: Fleet & lease vans


Values also fell in the dealer part-exchange sector, down by £162 (4.3%) compared to March and, at £3,582, the lowest average figure recorded since November last year.  CAP comparisons fell by four points to 102.09% suggesting dealers are being pragmatic in their price expectations to get stock sold.  Year-on-year values remain ahead by £135 or 3.9%, with the average van being 1.5 months older and 4,000 miles more travelled than in 2013.

Year-on-year table: Part-Ex vans




Nearly-new LCV values declined sharply after two consecutive months of record values.  Values fell by £2,152 (14.1%) to £13,033 in April with CAP comparisons down four points to 97.47%.  As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.