The National Association of Motor Auctions (NAMA) van market report shows average values of used LCVs at auction across the board fell by 2% compared with June.
Average values fell from £4,289 to £4,188 between June and July. Total sales fell by 4% from 6,255 to 6,007 units.
Over the past 12 months average age and mileage increased by 8.3 months and 4,361 miles respectively which more than accounts for a fall of £237 in the price of the average LCV lot.
However, over this period, conversion rates modestly improved, days on site reduced and the average number of entries needed to achieve a sale held firm.
The sales pattern set in June continued throughout July, according to the organisation, with prices at most years easing. But strong demand for the limited number of nearly new LCVs on offer resulted in a strong uplift in the returns they generated at auction.
In the month of July, the volume of LCVs on offer reduced across all ages. This bodes well for market prospects as we move towards September.
Alex Wright, chairman of NAMA Commercial Vehicle Group said: "The market performance reflected in this month’s LCV report was in line with our expectations, and sets out the path for the first weeks of August when activity across wholesale channels is likely to be unpredictable. However, the indications are that with demand across several sectors still exceeding supply, price levels should remain stable.
"Over what are the traditionally slow weeks of summer, it should not have come as too much of a surprise to see that LCV prices fell by 2% in July. Comparing this performance to the same month a year ago throws up some hard facts that highlight why, despite healthy demand for almost all clean LCVs, price levels were expected to slip.
"In August, sales of new LCVs offer little hope that plenty of desirable late year lots will appear, therefore the most attractive used stock will remain in extremely short supply. Accordingly, it continues to be necessary for older vans with higher mileage to be remarketed to their full potential if any shortfall in overall returns is to be plugged. Vendors will be well positioned to take advantage of what promises to be a healthy level of demand for all clean stock over the autumn months, which will hopefully bolster prices and lead to a profitable close to the year."