Headline light commercial vehicle values fell back for the second month running in June according to BCA’s latest Pulse report, although values remain well ahead year on year.
The average June figure of £4,766 for all LCVs represented a fall of £104 (2.1%) compared to May. Average age remained at just under 58 months, although average mileage increased for the second month running.
Fleet and lease values improved marginally over the month, while dealer part-exchange sectors saw values decline for the second month running and are now 10.5% down from the record levels seen in April.
Year-on-year, June 2013 was ahead by £595 or 14.2%, a significant rise on last month’s figures with age declining and mileage rising over the period. Average CAP performance was notably higher in 2013.
BCA's Duncan Ward said: "While average values declined for the second month running across the board, the low supplies of good retail-quality vans mean demand for these vehicles remains strong and this has benefited the fleet and lease sector where values rose yet again.
"The overall decline in average value is simply a result of buyers becoming a little more selective and not showing the same willingness to bid as strongly on high mileage and damage. Many corporate sellers are investing in pre-sale preparation – this is particularly important where vans have been body wrapped in vinyl livery as it allows their vehicles to be presented to the used buyer with an original factory finish.”
He added that while smart preparation is largely used by car vendors, its application can be equally important in the van market, provided vehicles are chosen carefully.
"For a 2009 model year van at 10,000 miles in good condition, but with a few small dents on 2 panels, Smart Prepared can be a cost efficient choice for the vendor," said Ward.
"The return on the investment to bring a five-year-old, 100,000 mile van, without a straight panel to its name, back to ‘showroom condition’ is likely to be less rewarding.”
He suggested there would be a "softening" of demand during the remainder of the summer and that now would be a good time for volume sellers to review their remarketing plans and make sure they are fully in tune with market sentiment.
Values in the fleet and lease LCV sector improved in June, rising by just £31 to £5,973, a rise of 0.5% compared to May and the second highest value on record for corporate LCVs. Performance against CAP improved to 99.8%, while retained value against manufacturer recommended price fell back to 35.21% from 36.05% recorded in May. Year-on-year values remain well ahead, up by £1,008 (20.3%) compared to the same month in 2012 – with average age and mileage down over the year. Retained value against MRP improved by more than three points.
Part-exchange van values fell for the second consecutive month, down by £135 (4.2%) to £3,036 and are now down by 10.6% compared to April’s record breaking average value. CAP comparisons fell over the month to 101.73% but continue to outperform the fleet and lease sector. Year-on-year values remain ahead by £191 or 6.7%, with average age declining and mileage up quite significantly (10.1%) compared to a year ago.
Nearly-new LCV values fell in June by £600 (4.6%) to £12,241 with CAP performance improving to 99.92%. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.