Average used LCV values were up £99 (2.3%) in July 2012 compared to the same month in 2011, according to BCA’s latest Pulse Report.
This was despite the average age climbing by more than four months (up 8.8%) and average mileage increasing by 10,700 (up 15.6%).
However, performance against CAP slipped by three-quarters of a point, year-on-year.
July’s average used LCV values improved by £58 to reach £4,229, equivalent to a 1.4% increase over June.
Over the month, average age fell to just under 57 months, while average mileage rose by nearly 3,000 to 79,400.
Fleet and lease sector also up year-on-year
July 2012 was £416 (9.0%) ahead of the same month last year in the fleet and lease sector – despite the average van being two months older and 9,000 miles higher this year.
Monthly values in the fleet & lease LCV sector improved from £4,965 in June to £5,029 in July. Performance against CAP climbed by two points to 99.8%.
Retained value against Manufacturer Recommended Price over 44 months and 72,000 miles was 31.96%, marginally up on the June figure.
Buyer confidence still fragile
Duncan Ward BCA’s general manager – commercial vehicles commented: “July was a stronger month for average LCV values than June, but buyer confidence remains fairly fragile and there is a reluctance to buy vehicles in poor condition because of the investment required to get these vehicles ready for retail.
“Trade buyers are looking for a quick turnaround and often buying to order, rather than speculating on vehicles.
“However, values remain relatively high because there is a real shortage of good quality, ready to retail used vans, which is leading to fierce competition and generally rising values for the best examples reaching the remarketing arena.
“This stock shortage is a long term issue and is unlikely to change while new van volumes languish well below pre-recession levels and the wider economic conditions remain so challenging.
“There is also little good news in the economy for the sole traders and small businesses who typically buy used LCVs.
“If business confidence is low, replacing the company van may become a very low priority and that will inevitably hit demand in the wider used market.”
BCA is advising sellers to review their remarketing activity to ensure their vans are presented in the most saleable condition to meet the demand that is there.
This message increases in importance over the coming weeks as there will be the usual volume uplift in September and October that sellers should be planning for now.
Part-exchange values fell to £2,703 in July, declining for the second consecutive month from May’s record value.
Month-on-month the fall was £142, equivalent to 4.9%, although CAP comparisons actually improved by nearly two points to 98.85%.
Year-on-year values remain well ahead, however, by £274 or 11.2%, with age remaining broadly static, but mileage rising by over 6,000.
Nearly-new values rose by £215 to £11,218.
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 fell by a point to 102.10%.