The headline average value of a used LCV sold at BCA climbed again in January, as average values improved for the fifth consecutive month, according to the company’s latest Pulse report.
Values for LCVs sold at BCA averaged £5,901 in January – a rise of £91 (1.5%) compared to December and the highest value on record. Performance against CAP improved by two percentage points to 101.2%.
Year-on-year values were up by a substantial £441 – equivalent to 8.0% - although performance against CAP¬ was down by half a percentage point compared to January 2015, despite the average van in 2015 being around 4.5 months younger and nearly 6,000 miles lower.
Year-on-year table: All vans
BCA’s LCV Operations Director, Duncan Ward commented “January saw strong levels demand for LCVs at BCA and a buoyant marketplace as average values climbed. The overall sentiment from trade buyers is that retail demand is good and this is keeping the auction halls busy as they compete for stock. Over recent months we have seen a better mix of product available for buyers with a wider choice and less duplication of models. This, combined with a reduction in the overall age and mileage profile, resulted in healthy average selling prices during January.”
“If we see a similar model mix going forwards, we expect February and March to be relatively strong for LCV residual values, based on our experience from previous years. However, there are signs of a two tier market developing as the best presented and specified vans typically outperform the market by some margin, while higher mileage or damaged examples can struggle to attract attention from the buyers. It underlines the importance of appraising and valuing vehicles sensibly and in line with market expectations.”
The fleet and lease sector recorded average values of £6,620 in January, an increase of £119 (1.8%) compared to December and the highest monthly value recorded since 2014. CAP performance improved from 98.75% to 100.9%, while retained value against MRP (Manufacturer Recommended Price) fell by a percentage point to 34.56%. Year-on-year, values were up by £142 (2.2%), although performance against MRP was down by nearly four percentage points.
Year-on-year table: Fleet & lease vans
Average part-exchange LCV values rose slightly in January, climbing by just £23 but enough to establish a new monthly record value of £4,049. Year-on-year values were ahead by £373, equivalent to 10.1%. CAP average comparisons improved to 102.9% in January, although CAP performance has declined substantially over the year and is down by more than two percentage points. Notably average mileage remains substantially lower in 2016, while average age has fallen by nearly six months.
Year-on-year table: Part-Ex vans
Nearly-new LCV values averaged £13,874 in January – a decrease of £1,258 compared to December. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor, as well as the continuing availability of ‘new shape’ models reaching the used market.
13 month rolling trend: