CommercialFleet

Average LCV values rise again in December

Average values for light commercial vehicles increased by £202 (3.9%) in December, as buyers competed strongly for stock in the shortened trading period, according to BCA.

Average values for all vans rose to £5,311, with record values achieved in the dealer part-exchange sector and for nearly-new vans.  It was the fifth month in a row that average values across all light commercial vehicles exceeded £5,000.  Despite this, average CAP performance fell back by one and half points to 102% compared to November.  Fleet & lease values fell back slightly from November’s highpoint, largely as a result of model mix as some corporate sellers held stock for the New Year, but were still the second highest on record.

Year-on-year values remain well ahead, up by £575 and equivalent to a 12.1% uplift over the twelve month period.  Age and mileage have risen notably over the year to around 60 months and 81K miles, up four months and 4K miles respectively.  Average CAP performance was up by one point compared to a year ago.

All vans

Avg Age (mnths)

Avg Mileage

Avg Value

Sale vs CAP

Dec 2012

55.93

78,793

£4,736

101.12%

Dec 2013

59.37

81,351

£5,311

102.07%

 

BCA’s general manager for commercial vehicles, Duncan Ward, said: “Average values for used LCVs remained high in December as buyers competed for the limited volume of stock on offer.  Many corporate sellers held vehicles over for the New Year and dealer part-exchange stock filled the gap, resulting in a significant price rise for this sector during the month.   Supply remains the key factor driving the market and this means there is plenty of competition for the best examples reaching the market.”

“Demand remains right across the board, 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: “While this is good news for sellers, from the buyers’ perspective the outlook for 2014 is that supply issues could actually worsen.   Our view is that the overall shortage of used product and the issues of supply versus demand will see a continuation of high conversions and higher selling prices in 2014, effectively meaning we are going to see more of what is best described as a “sellers’ market”. 

Values in the fleet & lease LCV sector fell back by £151 (2.2%) in December to £6,669, largely as a result of changing model mix as some corporate sellers held stock for the New Year.  It was the second highest figure on record since Pulse began reporting in 2005.  Performance against CAP fell back two points to 101.4%, while retained value against Manufacturer Recommended Price (MRP) also fell by a point to 37.66%. 

December recorded a year-on-year value increase of £1,286 (23.8%) in the fleet and lease sector, with average age down and mileage rising over the year.  Retained value against MRP improved by 4.5 points over the year.

Fleet/Lease

Avg Age (mnths)

Avg Mileage

Avg Value

Sale vs CAP

Sale vs MRP

Dec 2012

43.68

71,133

£5,383

100.69%

33.10%

Dec 2013

41.00

72,085

£6,669

101.48%

37.66%

 
Part-exchange van values climbed sharply to £3,723 in December – a rise of £269 (7.7%) compared to November and the highest average value ever recorded in the sector. CAP comparisons fell back by a point compared to November to 102.99%, but continue to outperform the fleet & lease sector.  Year-on-year values remain ahead by £515 or 16.0%, with average age and mileage declining compared to a year ago. 
 

Part-Ex

Avg Age (mnths)

Avg Mileage

Avg Value

Sale vs CAP

Dec 2012

79.52

95,741

£3,208

102.14%

Dec 2013

78.74

92,447

£3,723

102.99%

 

Nearly-new LCV values improved by £1,588 to £14,605 in December – the highest average value ever recorded - with CAP performance improving by three points to 103.31%.  As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor. 

Nearly-new

Avg Age (mnths)

Avg Mileage

Avg Value

Sale vs CAP

Nov 2013

9.21

8,743

£14,605

103.31%

 



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