There was a drop in average LCV values last month, with a fall of £74 recorded between July and August according to BCA’s latest Pulse data.
Figures for August show that average values fell to £4,056 from the £4,130 recorded in July. It was the third consecutive monthly fall recorded.
Despite this dealer part-exchange and nearly-new values actually increased month-on-month, although fleet & lease values declined marginally by just £32 (0.6%).
The overriding issue for the used LCV market, however, is the continuing dearth of stock reaching the wholesale arena. With the ongoing strong buyer demand, conversion rates have increased dramatically in recent weeks, with many vendors enjoying 100% conversions in individual sales sections.
Further evidence of this is provided by the performance against Guide Prices, which topped 103% on average – a 3% rise across the board, with all three sectors of fleet/lease, dealer part-exchange and nearly-new achieving over 100%. Year-on-year values are behind by over £150, having been £18 ahead last month.
Duncan Ward BCA’s general manager – Commercial Vehicles commented, “There were somewhat mixed messages emerging in the used LCV market last month – average values fell, yet conversions rose sharply.”
“The reality is that nearly every vehicle we consign currently has buyers clamouring for it – even vehicles with damaged panels or other cosmetic issues. We simply cannot get enough vans to satisfy the needs of the buyers at the moment, and as a result traders are widening their buying parameters and focusing on older, higher mileage vehicles.”
“What we experienced in August was a subtle change in the mix of sold vehicles where the product available was often in poorer condition than we have seen in recent months. However, with little else to choose from, even these less cosmetically attractive vehicles were snapped up by trade buyers – but at slightly lower prices which particularly skewed the average value downwards in the fleet sector.”
“Meanwhile, in the dealer P/X sector, values rose as buyers who typically purchase fleet stock focussed on these vehicles. Demand for the very few late year, low mileage LCV’s was intense and values rose sharply.”
Ward added “While the wider economic conditions may not seem conducive to a bullish LCV market, with the fact that supply is so short we are expecting prices for many vans to rise sharply in the weeks ahead.”
Values fell back slightly in the fleet & lease LCV sector, by just £32 (0.6%) to £4,651, while year-on-year values were adrift by £106 (2%). Fleet vans averaged 103.75% of CAP in August, nearly a three point increase from July.