8 January 2015 - BCA Commercial Pulse: Used LCV values reach new record levels
Average values for light commercial vehicles rose in December, as the on-going shortage of good quality used vans, combined with the shorter trading period in the run up to Christmas, kept values high.
The average value of a van sold at BCA in December was £5,870, the highest monthly value on record. Demand remained strong for any vehicle offered with the combination of a good colour, specification and condition, and interest continued for panel vans suitable for parcel delivery and courier work well into December. Fleet & lease values increased over the month, while part-exchange and nearly new values were static. Year-on-year values remain well ahead by £559 (10.5%), with age and mileage falling. Performance against CAP was down by three quarters of a point compared to 2013.
Year-on-year table: All vans
BCA’s Head of Commercial Vehicles, Duncan Ward, commented “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 third month running, year-on-year values across the board were up by around 10% as the relative shortage of retail quality LCVs continues.”
“Looking ahead we expect this general pattern to be maintained in 2015 while stock remains in short supply. With the parcel delivery and courier sector growing rapidly as the digital shopping revolution continues, we expect values for panel vans of all types and capacities to remain at a high level. The pre-budget announcement suggested that major infrastructure projects, road network improvement schemes and house building projects remain on the table, and this will be a boost for the civil engineering and construction industries.”
Values for fleet and lease LCVs averaged £6,859 in December – the second highest monthly value on record and an increase of £279 (4.2%) over November’s value. CAP performance averaged 100.3% and retained value against Manufacturer Recommended Price increased to 38.38%. Year-on-year, values were up by £190 or 2.8%.
Year-on-year table: Fleet & lease vans
Part-exchange LCV values remained at near record levels in December, falling back by £10 from November’s figure and just £27 behind the all-time high figure recorded in October at £3,848. December’s figure was the third highest monthly average value recorded in this sector since Pulse began reporting. CAP average comparisons were static at 105.4% and continue to outperform the fleet & lease sector by a considerable margin. Year-on-year values remain ahead by £125 or 3.3%, with the average van being four months older and having a 4,000 higher mileage.
Year-on-year table: Part-Ex vans
Nearly-new LCV values averaged £13,196 in December, virtually static over the month although CAP comparisons fell by nearly three points to 96.3%. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.