The National Association of Motor Auctions (NAMA) reports the average values of used LCV’s at auction across the board decreased by 1% from £4,844 to £4,794 between February and March.
With volumes increasing by 7.2% the average price paid for an LCV at auction fell by £50. The proportion of lots selling at the first time of being offered rose to 82%, and other metrics each continuing to move in the right direction, the outlook remained bright, according to the association
The average number of days that LCVs remained on site fell to 12.4 and the average mileage was 83,123 miles.
Although March posted an average price reduction of £50, in view of the 7.2% growth in volume coupled to the typical age of an LCV increasing by two months, this should be acknowledged to represent a good outcome, said NAMA.
It suggests the 16.3% rise in the number of older LCVs being sold over the month that instigated this slippage with prices for each of the other age bands making headway. For the youngest stock, the lift in price was especially marked (+9.3%) which directly relates to the short supply.
With businesses continuing to buy new vans in order to refresh their ageing fleets, it was to be expected that there would be an increase in the volume of used LCVs being auctioned. Accordingly, with the exception of nearly new LCVs, volumes rose across all age bands.
The sharp reduction in the number of late year LCVs coming under the hammer is partly attributable to a growing number of fleet managers who are opting to keep such desirable vehicles in harness in order to meet projected growth in their businesses.
Alex Wright, Chairman of NAMA commercial vehicle group said: "For a marketplace eager to hear good news, the first quarter of 2014 could hardly have delivered more. The question now is if this will continue its upward trend or has 2014 reached its peak?
"We anticipate that with the UK’s economy proving to be surprisingly robust and predicted to grow by around 3% over each of the next couple of years, it’s clear that there will be a continuing need for good used LCVs.
"The big concern would arise if supply were to significantly exceed demand, yet with no sign of such an impending imbalance at the present time an imminent fall in LCV prices would appear unlikely."