Demand from professional buyers and shortages of good retail quality vans helped record exceptionally high average values for light commercial vehicles in August, according BCA’s latest Pulse report.
Average values for all vans rose above £5,000 for the first time, and record values were achieved in the fleet and lease and dealer part-exchange sectors, while nearly-new values were the second highest on record.
BCA suggests the outlook for the current month is more of the same, as stock remains in very short supply and retail LCV activity typically increases during September.
The average August figure of £5,013 for all LCVs represented a £241 rise over July’s value, equivalent to a 5% climb over the month.
Average age remained around 58.5 months, although average mileage fell to 80,600, following three consecutive monthly increases. Year-on-year values remain well ahead, up by £938 equivalent to a 23% uplift over the twelve month period. Average CAP performance remains notably higher in 2013, reaching 102.8% last month.
Meanwhile, values in the fleet and lease LCV sector improved by £432 in August to a new record value £6,214. Performance against CAP improved by two points to 102.99%, while retained value against Manufacturer Recommended Price (MRP) fell back half a point to 36.12%.
August recorded the largest ever year-on-year value differential in the fleet and lease sector, up by £1,370 (28.2%) compared to the same month in 2012 – with average age and mileage down over the year. Retained value against MRP improved 5.5 points over the year.
Duncan Ward, BCA’s general manager of commercial vehicles, said: “Average values have been substantially stronger over the summer holiday period than we might have expected, given that anecdotal reports suggest van retailers have been relatively quiet.
“However, the key factor driving the market is supply of good retail quality stock – or rather the lack of it – and this means there is plenty of competition for the best examples reaching the market.
“Demand has been right across the board during August, from older higher mileage vans through to younger ex-fleet and lease vehicles, while the few late-plate light commercials on offer can make exceptional values.
“As always, good condition is the key and vans with a nice specification and in an attractive retail colour are very desirable.”
Ward added: “The outlook for September is more of the same, as stock remains in very short supply and, with retail LCV activity expected to pick up during the month, the market is experiencing a double whammy.
“BCA has already recorded some exceptional results in light commercial sales during the early days of September, so there is every chance that average values could climb yet again this month.”
Part-exchange van values also reached record levels, rising by £152 (4.6%) to £3,418. CAP comparisons improved over the month to 102.71%.
Year-on-year values remain ahead by £634 or 22.7%, with average age down and mileage over 5,500 higher compared to a year ago.
Underlining the value evolution in the dealer part-exchange sector, average values exceeded £3,000 for the first time in December 2012, and every month since has been above that level. Record values have been set five times in the last 12 months.