BCA’s latest Pulse data shows average LCV values remained on a high in January, with fleet & lease values increasing and dealer part-exchange falling slightly from the exceptional prices seen in December, when lack of stock, a shorter trading period and changing mix contributed to the values achieved.
The average January figure of £4,669 for LCVs was the second highest on record for any month since Pulse began reporting in 2005. Both average age and mileage rose over the month to 56.6 months and 80,700 miles respectively. There was strong demand from professional buyers across the widest range of commercial vehicles and sold volumes rose significantly compared to December.
Year-on-year, January was ahead by £186 or 4.1%, with age and mileage rising over the period.
Duncan Ward BCA’s general manager – commercial vehicles commented “Although the headline value declined compared to December, January essentially delivered more of the same – a shortage of stock allied to decent levels of demand that generated exceptionally strong prices in the used van market.”
He added “With stock remaining thin on the ground, buyer demand is focused on the best quality commercial vehicles and this is driving values up, particularly for corporate sellers where average values reached a new highpoint in January. Sale conversion rates also rose in January as buyers competed for stock and BCA saw lots of activity in the online arena with nearly a quarter of all vehicles being purchased by internet bidders.”
He added “The rise in average prices at the ‘value-for-money’ end of the market continues unabated and dealer part-exchange values have stepped up significantly over the past two months. This is likely to be a side-effect of the tough economic climate. With continuing redundancies across a range of business sectors from retail to manufacturing, many people will be tempted strike out on their own and one of the first things they will buy with their redundancy money is a van.”
Following a 5.2% rise in December, values in the fleet & lease LCV sector improved again in January, rising by £54 (1%) to £5,437 - the highest average monthly value on record for corporate CV stock. The last four months have seen the highest monthly values on record for fleet & lease LCVs.
Retained value against Manufacturer Recommended Price fell slightly in January to 32.7% from 33.1% in December, with average age and mileage rising slightly. January 2013 was £329 (6.4%) ahead of the same month in 2012 – with average age and mileage also rising over the period.
January part-exchange values were the second highest since Pulse began reporting in 2005, falling back by just £12 to £3,196 compared to December’s record levels. CAP comparisons improved by nearly three points to 104.8% and continue to outperform the fleet & lease sector by more than three points. Year-on-year values remain well ahead by £356 or 12.5%, with age virtually static and average mileage rising by nearly 4,000 miles in 2013.
Nearly-new values fell back in January for the second consecutive month, averaging £12,137. CAP performance fell by more than three points to 98.6%. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.