4 September 2014 - BCA Commercial Pulse: LCV values at record levels as supplies remain scarce
August 2014 saw record average values for light commercial vehicles according BCA’s latest Pulse report, as demand from professional buyers remained strong last month and shortages of good retail quality vans continued.
The average van at BCA sold for £5,658 in August, an increase of £160 (2.9%) compared to July and the highest monthly average figure on record. Fleet & lease and nearly-new values rose, month-on-month, while part-exchange values fell back. Year-on-year values remain well ahead by £645 (12.8%), with both age and mileage falling and performance against CAP improving slightly.
Year-on-year table: All vans
Duncan Ward BCA’s General Manager – Commercial Vehicles commented, “Average values have been climbing over the summer holiday period, despite anecdotal reports suggesting that van retailers have been relatively quiet. However, the key factor driving the market is supply of good retail quality stock – or rather the lack of it – and this means there is plenty of competition for the best examples reaching the market.”
“Demand has been strong for well-presented corporate stock during August, while the few late-plate light commercials on offer can make exceptional values. As always, good condition is the key and vans with a nice specification and in an attractive retail colour are very desirable.”
Values for fleet and lease LCVs improved sharply from £6,464 in July to £6,805 in August with CAP performance improving to 102.99% and retained value against Manufacturer Recommended Price improving by over a point to 36.88%. Year-on-year, values were up by £591 (9.5%), with performance against CAP up by more than half a point on 2013.
Year-on-year table: Fleet & lease vans
Part-exchange values declined for the third month running in August, falling by £59 (1.6%) to £3,578. Despite this, CAP average comparisons improved by nearly a point to 104.2% and continue to outperform the fleet & lease sector. Year-on-year values remain ahead by £160 or 4.6%, with the average van being three months older and 1,300 miles more travelled than in 2013.
Year-on-year table: Part-Ex vans
Nearly-new LCV values rose sharply by £1,512 (12.6%) to £13,490 in August with CAP comparisons up by two points at 99.96% 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.