CommercialFleet

LCV values rise in September but lag behind 2011

According to BCA’s latest Pulse Report, average used LCV values improved by £149 (3.6%) to £4,224 in September compared to August, although year-on-year figures lagged behind for the first time this year. 

Average age fell slightly to just under 58 months while average mileage increased to nearly 79,000.  

Values increased in all three sectors, with the dealer part-exchange average values reaching record levels. 

Performance against CAP average improved over the month by nearly two points to 100.7%.

Year-on-year, September 2012 was £185 behind the same month in 2011, with both average age and average mileage increasing this year.

Seasonally driven

Duncan Ward BCA’s general manager – commercial vehicles commented: “The market bounced back in September following the quieter summer period. 

"Much of this improvement is seasonally driven as trade buying activity rises to meet the needs of small businesses that often look to change their vehicles in the autumn months.

“However, we are yet to see any significant uplift in vans from corporate fleet sources and demand is still outstripping supply which is keeping values firm. 

"Trade buyers have to look further afield to secure the stock they need and BCA’s Live Online and Bid Now/Buy Now internet platforms are seeing plenty of activity. 

"Many buyers are looking at older, higher mileage vehicles if they are in good condition and as a direct consequence we have seen values rise in the dealer P/X sector, while demand for the very few late year, low mileage LCV’s remains intense. 

"Some astute rental operators are selling stock to take advantage of the demand in the sub-two year old van market and are reaping the rewards as a result.  There is also interest in poorer condition vans if they are valued sensibly.

“Even so, we expect to see some pressure on values as volumes rise in the wholesale sector and retail demand softens in the run-up to the year end.” 

Fleet and lease LCV sector

Monthly values in the fleet & lease LCV sector improved by £158 (3.2%) to £5,002 in September, while performance against CAP increased by more than a point to 99.9%.

Retained value against Manufacturer Recommended Price also improved by a point to 31.65%, with average age and mileage falling slightly.

September 2012 was £39 (0.5%) behind the same month last year – with average age rising but mileage falling.

Part-exchange

Part-exchange values reached a new high in September, improving by £190 (6.8%) over the month to reach £2,974.

CAP comparisons improved by nearly three points to 102.62% and have risen by six points in the past quarter, outperforming the fleet & lease sector. 

Year-on-year values remain well ahead by £221 or 8.0%, with age declining and mileage rising in 2012.

Nearly-new values improved to £12,006.  As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor. 

CAP performance increased by three points to 103.82%. 



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