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8 April 2014 - BCA Commercial Pulse: Used LCV values reach record levels… again

Average values for commercial vehicles reached record levels for the fourth consecutive month according to BCA’s latest figures.  Demand for LCVs remained strong throughout the month and with the best quality stock in short supply, values continued to rise.  Fleet & Lease LCV values broke through the £7,000 barrier for the first time,  while P/X van values rose to the third highest point since Pulse began reporting in 2005.  Nearly-new vans also posted a record value as buyers competed strongly for the stock on offer.

Values for all light commercial vehicles increased to £5,557 in March – a rise of £212 (3.9%) compared to February - as buyer demand continued at exceptional levels.   March’s average value was the highest since Pulse began reporting in 2005.  Sales of fleet & lease vans rose over the month, resulting in a slightly richer mix of stock in the marketplace.

Year-on-year values remain well ahead, up by £697 (14.3%) over the twelve month period.  Compared to a year ago, age has risen by nearly two months to over 60 months, while mileage has decreased by around 3,000 miles on average over the same period.  Average CAP performance improved by half a point compared to March 2013.

 

 

 

Year-on-year table: All vans

All vans

Avg Age (mnths)

Avg Mileage

Avg Value

Sale vs CAP

Mar 2013

58.88

80,853

£4,860

103.32%

Mar 2014

60.41

77,816

£5,557

104.03%


BCA’s General Manager – Commercial Vehicles, Duncan Ward, commented "Values remained strong in March, as the combination of limited supply and good levels of demand in the remarketing sector saw prices rise for corporate stock and older dealer part-exchange vans.   LCV values have been universally strong throughout the first quarter of this year and are significantly higher than the same period last year."

“If anything, the market has been even more competitive over the past few weeks and well-presented LCV’s are routinely outperforming guide expectations – often by a considerable amount.  The auction halls have been very busy across the BCA network, while the number of buyers participating via BCA Live Online continues to rise.”

“There can be little doubt that the improving economic background is giving a boost to the used LCV market, particularly as demand increases from the building and construction industries.  Small and medium-sized enterprises (SMEs) remain positive about prospects this year, but cashflow is a problem for some and that may impact any decision on replacing their workhorse vans.”

Ward added “We expect demand to remain strong in April, but post-Easter, we know from experience that values typically soften over the late spring and early summer months. There are also indications from the Confederation of British Industry (CBI) that while the economy is still growing, the pace is slowing and this may be a factor moving forward.”

Values for fleet and lease LCVs improved to record levels in March, rising by £239 (3.5%) to £7,049 – the highest average monthly value on record.  Year-on-year, values were up by a significant £1,142 (19.3%), as average values continued to race ahead in the light commercial sector.  Performance against CAP improved by more than a point to 103.21%, while retained value against Manufacturer Recommended Price (MRP) improved to 39.22%.   

Year-on-year table: Fleet & lease vans 

Fleet/Lease

Avg Age (mnths)

Avg Mileage

Avg Value

Sale vs CAP

Sale vs MRP

Mar 2013

43.99

69,646

£5,907

102.74%

35.43%

Mar 2014

40.77

69,671

£7,049

103.21%

39.22%

Values also improved in the dealer part-exchange sector, rising by £65 (1.7%) to £3,690 – the third highest monthly average on record.   CAP comparisons improved sharply compared to February, rising by more than two points to 106.07%, and continuing to outperform the rest of the market.  Year-on-year values remain ahead by £411 or 12.5%, with the average van being three months older, but 9,000 miles less travelled than in 2013. 

Year-on-year table: Part-Ex vans 

Part-Ex

Avg Age (mnths)

Avg Mileage

Avg Value

Sale vs CAP

Mar 2013

79.55

97,583

£3,279

105.26%

Mar 2014

82.37

88,559

£3,690

106.07%

Nearly-new LCV values reached record levels for the second month running, rising by £386 to £15,185 in March, with CAP performance improving to 101.48% - up 2 points 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. 

 


Nearly-new

Avg Age (mnths)

Avg Mileage

Avg Value

Sale vs CAP

Mar 2014 

8.54

9,375

£15,185

101.48%