Average values for light commercial vehicles reached record levels in September, according to BCA’s latest Pulse report, as demand for good quality vans from professional buyers continued to outstrip supply.
Average values for all vans rose to £5,158, an increase of £145 compared to the previous record set in August. Record values were achieved in the fleet and lease and dealer part-exchange sectors, while nearly-new values declined compared to the previous month.
The average September figure of £5,158 for all LCVs represented a 2.8% increase over the August value, with average age rising slightly to 59.3 months and average mileage static at just over 80,000. Year-on-year values remain well ahead, up by £934 equivalent to a 22.1% uplift over the twelve month period. Average CAP performance climbed again to 105.19%, rising by nearly three points compared to August and up by 4.5 points compared to a year ago.
Duncan Ward, BCA general manager – commercial vehicles, commented: "BCA saw exceptional levels of demand for light commercial vehicles during September, with a number of 100% conversions for corporate sellers and notably higher average values for fleet/lease vehicles.
"The market remains very short of good quality stock and with anecdotal evidence suggesting retail activity picked up in September there was very competitive bidding right across the remarketing sector last month.
“With stock at a premium, trade buyers have been very active on BCA’s Live Online and Bid Now/Buy Now internet platforms and the new video appraisals introduced by BCA have proved popular with buyers. With professional buyers increasingly looking at buying older, higher mileage vehicles 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. As always, good condition is the key and vans with a nice specification and in an attractive retail colour are very desirable.”
He added that there was little indications that there would be any greater access to good quality stock over the next few months.
Values in the fleet and lease LCV sector improved by £194 (3.1%) in September to a new record value of £6,408. Performance against CAP improved by two points to 105.06%, says BCA, while retained value against manufacturer recommended price (MRP) rose by a point to 37.03%. September recorded the largest ever year-on-year value differential in the fleet and lease sector, up by £1,406 (28.1%) compared to the same month in 2012 – with average age and mileage down over the year. Retained value against MRP improved by 5.38 points over the year.
Part-exchange van values also reached record levels, rising by £91 (2.6%) to £3,509. CAP comparisons improved by nearly four points over the month to 106.51%. Year-on-year values remain ahead by £535 or 17.9%, with both average age and mileage rising compared to a year ago.
Nearly-new LCV values fell in September by £1,767 to £12,694, with CAP performance declining by a point to 99.39%. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.