Used LCV values improved across the board in April by £44 (1.0%) to reach £4,271 as average age, mileage and CAP performance remained virtually static compared to March.
Average values remain relatively strong in 2012, following the 20-month high recorded in January and BCA’s Pulse data shows average values improved in the fleet/lease and dealer part-exchange sectors – reversing falls seen the previous month in both cases.
Values slipped in the very low volume nearly-new van sector, but this was as a result of model mix.
However, supplies of good quality vans reaching the wholesale market remain limited and competition from buyers for the best examples remains intense. This is seen most clearly in the year on year figures where values have improved significantly even with age and mileage rising.
Year-on-year, April 2012 was £302 (7.6%) ahead of the same month in 2011, despite the average age climbing by six months to 57 months and average mileage being 5,500 miles higher at 78,000. Performance against CAP also improved year-on-year, up nearly one and a half points.
Duncan Ward BCA’s general manager, commercial vehicles, said “The overall market peaked in January this year, and values have flattened out in the following three months.
“But looking at the individual sectors paints a slightly different picture. Fleet values dipped in February but have risen since then – April values were identical to those recorded in January and are the highest in two years.
“This is despite average age and mileage rising and further underlines the shortage of stock as buyers are paying more in 2012 for older, higher mileage vans than they were a year ago.”
Ward added “Previous years suggest the summer months are relatively flat, with a significant spike in values in the early autumn. The difficult economic conditions mean that many businesses may defer changing their vehicles until there are signs of improvement.
“Countering this, many new small businesses and sole traders are starting up and a van is often one of the first things on the shopping list.”
Values improved sharply in the fleet & lease LCV sector in April, rising by £127 (2.5%) compared to March. Fleet vans averaged 99.1% of CAP over the month, a marginal rise compared to March. Retained value against Manufacturer Recommended Price over 44 months and 70,000 miles was 32.55%, down slightly on last month.
Year-on-year, April 2012 was £587 (13%) ahead of the same month last year – some of this is value evolution over the period, but it should also be remembered that trading conditions were affected last year by the Royal Wedding and double Bank Holidays.