LCV values rise confirmed by NAMA

A report by the National Association of Motor Auctions has shown an average 5% rise in LCV auction values compared with March.

During April the average values of used LCVs at auction across the board rose from £4,293 to £4,497. With conversion rates staying at a high of 80% and sales volumes and mileages falling by significant amounts, the prospects for May and June seem encouragingly high, according to NAMA.

The average number of days that LCVs remained on site was 10.7, a healthy year-on-year reduction of 5.6 days. This reduction in days on site will be of benefit to corporate vendors as it will provide a boost to cash flow as vehicles are disposed of more quickly.

While the year-on-year average price was down £213, NAMA says it is important to note that the LCVs sold in April 2013 were on average significantly older and had covered more miles than those sold in the same month of 2012.

In addition, despite the average age having increased by 7.3 months and average mileage rising by 5,508 miles, conversion rates were 5% higher.

The price difference between first time entries compared to subsequent sales has been closing in recent months. Alex Wright, chairman of NAMA Commercial Vehicle Group, said that this is due to vehicles being more appropriately priced in the first instance as vendors are pleasantly surprised by the strength of price as bidding in halls go past the reserve.

Wright said: "With the April report delivering such a positive message in regards to nearly every aspect of the used LCV market it likely that few will be able to remember a time when the market for light commercial vehicles was so vibrant with demand being so well matched to supply.

"If all vendors continue to price their vehicles to the market value and allow the auctions to have ample time to pre-market their vehicles it is probable that 2013 will deliver the best returns seen for vans in many a year."

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