Average values for commercial vehicles continue to rise, as January 2014 posted the highest figure on record, according to BCA’s latest figures.
Values for all light commercial vehicles increased marginally in January 2014 to £5,322 – a rise of £11 compared to December 2013 – as buyers competed strongly for stock, says the vehicle remarketing company.
January’s average value was the highest since Pulse began reporting in 2005 and was the sixth month in a row that average values across all light commercial vehicles exceeded £5,000.
Year-on-year values remain well ahead, says, BCA, up by £653 (13.9%) over the twelve month period. Age has risen over the year by around a month to 58 months, while mileage has decreased by around 1,000 miles on average over the same period. Average CAP performance was exactly the same as 12 months ago.
BCA general manager for commercial vehicles, Duncan Ward, said: "January essentially delivered more of what we saw throughout the previous 12 months – a shortage of stock allied to decent levels of demand that generated exceptionally strong prices in the used van market.
"With stock remaining thin on the ground, buyer demand is focused on the best quality commercial vehicles and this is driving values up. BCA saw lots of activity in the online arena with around a quarter of all vehicles being purchased by internet bidders and BCA’s Video Appraisals are helping to create additional confidence for remote buyers.
"The rise in average prices at the ‘value-for-money’ end of the market also continues and dealer part-exchange values reached a new record level.
"In fact, demand has been 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. Similarly any light commercials with specialist equipment – such as tippers, dropsides or lutons with tail-lifts – generate a lot of interest from buyers, not just in the UK but further afield."
Although vans from fleet and lease operators fell back in value compared to December by £215 (3.2%) to £6,454, this was largely as a result of the changing model mix as volumes rose significantly. However, values were up by £1,071 (19.8%) year on year, underlining the ongoing growth in average values in the light commercial sector. Performance against CAP improved by half a point to 101.92%, while retained value against manufacturer recommended price (MRP) fell by nearly a point to 36.83%.
Following a sharp rise in December, used values climbed again in the dealer part-exchange sector as values rose to £3,752 – a rise of just £29 (0.7%) compared to December, but enough to establish another record monthly value. CAP comparisons improved by half a point compared to December to 103.40%, and continue to outperform the fleet & lease sector. Year-on-year values remain ahead by £556 or 17.3%, with average age increasing and mileage declining compared to a year ago.
Nearly-new LCV values fell from December’s peak of £14,605 to £13,059 in January, with CAP performance also falling to 98.00% from 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.