CommercialFleet

Used LCV values decline in November

The average values of used LCV’s at auction across the board declined by -3.6% from £4,681 to £4.512 between October and November, according to the National Association of Motor Auctions (NAMA).

Total sales volumes saw a fall of -12.6% with a total of 7,963 units being sold.

After the strength seen in October, it was to be expected that November’s figures would struggle to impress.

With average age and mileage having risen, it doesn’t come as much of a surprise that prices declined.

Over the past year, sales volume grew by 20%, average mileage and age for LCVs increased by 3,116 miles and 3.8 months respectively.

Yet encouragingly, both the number of entries required to sell each LCV lot and days on site were slightly lower, whilst conversion rates and prices improved by 3% & 7%.

Following on from October’s spike in sales volumes, a fall in November of 12.6% signalled a return to trend.

Alex Wright, chairman of NAMA Commercial Vehicle Group said: "In last month’s NAMA report, the strength of the marketplace for LCVs had hit a high point with the general sentiment being that things were as about as good as they were going to get.

"Therefore, the -3.6% decline of average values of used LCV’s at auction across the board, is not a true reflection of the increase in age and mileage.

"The market is clearly still on at an all-time high with no visible signs of it ending anytime soon.

"It is unlikely that there will be any marked uplift in the wholesale marketplace for LCVs until the New Year has found its stride, yet at that point there is every prospect that a series of strong months can be delivered.

"With the UK’s economy performing better than had been predicted, it is likely that 2014 will be another profitable year for our industry."

Price changes by age

 

 

Aug-13

 

Sep-13

 

Oct-13

 

Nov-13

<2 Years

 

£10,205

 

£11,185

 

£11,820

 

£11,175

Previous month Diff

 

3.8%

 

9.6%

 

5.7%

 

-5.5%

2 - 4 Years

 

£6,170

 

£6,345

 

£6,700

 

£6,830

Previous month Diff

 

1.8%

 

2.8%

 

5.6%

 

1.9%

4.1 - 6 Years

 

£3,965

 

£4,080

 

£4,265

 

£4,250

Previous month Diff

 

1.3%

 

2.9%

 

4.5%

 

-0.4%

Over 6 Years

 

£1,895

 

£2,190

 

£2,420

 

£2,370

Previous month Diff

 

2.6%

 

15.6%

 

10.5%

 

-2.1%

 

The price falls recorded in November correlate closely with the pattern of mileage increase recorded across the various age bands, making them less attractive to trade buyers looking for desirable stock.

Volume Changes by Age

 

 

Aug-13

 

Sep-13

 

Oct-13

 

Nov-13

<2 Years

 

404

 

334

 

504

 

367

Previous month Diff

 

1.5%

 

17.3%

 

52.1%

 

-27.8%

2 - 4 Years

 

2,064

 

2,138

 

2,452

 

2,003

Previous month Diff

 

12.8%

 

3.6%

 

14.7%

 

-18.3%

4.1 - 6 Years

 

2,687

 

2,759

 

2,884

 

2,609

Previous month Diff

 

2.5%

 

2.7%

 

4.5%

 

-9.5%

Over 6 Years

 

2,661

 

2,698

 

3,266

 

        2,984

Previous month Diff

 

0.8%

 

1.4%

 

 

21.1%

 

-8.6%

 

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