Headline light commercial vehicle values climbed in July according to BCA’s latest Pulse report, although by only £6 compared to June values.
It was, however, enough to reverse the trend of price falls recorded over the previous two months. BCA reports that demand from professional buyers remains relatively strong despite the market entering one of the traditionally slower times of the year, but recommends vendors should be valuing stock realistically as volumes will inevitably rise in the weeks ahead.
The average July figure of £4,772 for all LCVs represented a small rise of just £6 compared to June. Average age remained around 58 months, although average mileage increased for the third month running. Fleet and lease values fell, but remain well ahead year-on-year, while dealer part-exchange sectors saw values recover sharply to reach the third highest monthly value on record.
Year-on-year, July 2013 was ahead by £543 or 12.8%, with age and mileage rising over the period. Average CAP performance remains notably higher in 2013.
Duncan Ward BCA general manager – commercial vehicles said: "The summer holiday period is typically a weaker time for demand but values have been maintained at a similar level to last month largely as a result of the low levels of supply. Trade buyers are continuing to focus on the very best retail vehicles which are routinely making exceptional money, while vans in poor condition may struggle for attention.
“Sellers should consider adjusting valuations now on poorer condition vans with a view to remarketing them before volumes begin to rise and buyers have more choice from mid-September onwards.
“Vans entered from dealer part-exchange sources have outperformed the market in recent weeks, and values rose sharply during July. Dealers are valuing their part-exchange vans realistically to tempt buyers in and have reaped the rewards of rising average values, a CAP percentage that is ahead of the wider market performance and good sale conversions as a result."
Values in the fleet & lease LCV sector fell by £171 in July to £5,782, a fall of 3.1% compared to June. Performance against CAP improved by one point to 100.8%, while retained value against Manufacturer Recommended Price improved marginally to 36.62%. Year-on-year values remain well ahead, up by £753 (15.0%) compared to the same month in 2012 – with average age and mileage down over the year. Retained value against MRP improved by nearly four points.
Part-exchange van values recovered sharply to reach £3,266, a rise of £230 (7.5%) and the third highest monthly value on record. CAP comparisons improved over the month to 102.55% and continue to outperform the fleet and lease sector. Year-on-year values remain ahead by £563 or 20.8%, with average age flat and mileage nearly 4,000 higher compared to a year ago.
Nearly-new LCV values climbed in July by £575 (4.6%) to £12,841 to return to almost exactly where they were two months earlier. CAP performance improved marginally to 100.03%. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.