10 December 2014 - BCA Commercial Pulse: Used LCV values remain high as shortage continues
Average values for light commercial vehicles were stable in November as the ongoing shortage of good quality used vans continued. Professional buyers and end users alike competed strongly for the best quality stock on offer, with values for the best presented vans typically outstripping price guide expectations by some margin. For the second month running, year-on-year values across the board are up by nearly 10% as the relative shortage of retail quality LCVs continues.
The average value of a van sold at BCA in October was £5,615, the third highest monthly value on record. Demand was broad based throughout the month, with any vehicle offered with the combination of a good colour, specification and condition attracting attention from buyers. Fleet & lease and nearly new values increased over the month, while part-exchange values fell back by just £17 from October’s record level. Year-on-year values remain well ahead by £506 (9.9%), with age and mileage falling. Performance against CAP was down by just over half a point compared to 2013.
Year-on-year table: All vans
BCA’s General Manager – Commercial Vehicles, Duncan Ward, commented “November maintained the pattern we have seen throughout 2014, with high levels of demand for the best quality stock and often exceptional prices being achieved. While low mileage, clean examples remain hard to find, buyers are happy to bid strongly on higher mileage or older vehicles if the condition and specification is good. However, we are seeing greater numbers of hard-worked ex-corporate stock reaching the market in often quite poor condition – these vehicles need to be properly appraised and realistically valued to attract the buyers.”
Values for fleet and lease LCVs averaged £6,580 in November – an increase of £53 (0.8%) over October’s value - with CAP performance averaging 101.8% and retained value against Manufacturer Recommended Price increasing to 37.44%. Year-on-year, values were down by £240, a reflection on the fact that values were exceptionally high in November 2013 and remain the second highest on record.
Year-on-year table: Fleet & lease vans
Part-exchange LCV values fell back by just £17 from October’s record level to £3,858, the second highest monthly average value recorded in this sector since Pulse began reporting. CAP average comparisons fell back by two points to 105.5% but continue to outperform the fleet & lease sector by a considerable margin. Year-on-year values remain ahead by £404 or 11.6%, with the average van being five months older but a similar mileage compared to last year.
Year-on-year table: Part-Ex vans
Nearly-new LCV values averaged £13,208 in November, a rise of £381 (2.9%) compared to October with CAP comparisons improving to 99.16% over the month. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.