Average values for commercial vehicles reached record levels in May, the fifth time in the last six months a new record has been set according to BCA’s figures.
Demand for LCVs remained strong throughout the month and with the best quality stock in short supply, values continued to rise. Both Fleet & Lease and Dealer P/X van values rose during the month and are well ahead year-on-year.
The average van at BCA sold for £5,587 in May, an increase of £192 (3.5%) over April. Year-on-year values remain well ahead, up by £717 (14.7%) over the twelve month period.
Compared to a year ago, age is static at 58 months, while mileage has decreased marginally over the same period. Average CAP performance is down slightly compared to May 2013.
BCA’s general manager commercial vehicles Duncan Ward said: "The market returned strongly in May, with conversion rates improving over April and values rising yet again, despite volumes remaining relatively high.
“Competition is typically intense for retail quality used stock, with values rising as a result and BCA Live Online buyers continue to play a significant role, accounting for around 30% of volume sold.”
“While the best quality one-owner vans remain in short supply – with that unlikely to change in the near future – the market is seeing plentiful supplies of older, higher mileage models of variable quality and presentation.
"These vehicles need to be sensibly valued to tempt the buyers and vans with damage, in non-retail or corporate colours or with excessive mileage will need to be realistically valued if they are to sell first time.”
“There can be little doubt that the improving economic background is giving a boost to the used LCV market, and small and medium-sized enterprises (SMEs) remain positive about future prospects. As this group are the biggest buyers of used LCVs we should expect demand to remain relatively strong in the months ahead.”
Values for fleet and lease LCVs improved by £64 (0.95%) in May to £6,799, with CAP performance declining by two points but retained value against Manufacturer Recommended Price improving. Year-on-year, values were up by £857 (14.4%), although performance against CAP was slightly down on 2013.
Values recovered strongly for dealer part-exchange vans, rising by £223 (6.3%) to £3,751 – just £1 off the highest value ever recorded in the sector.
CAP average comparisons improved by 1.5 points to 103.5% and year-on-year values remain ahead by £580 or 18.2%, with the average van being 2 months older and 4,000 miles less travelled than in 2013.
Nearly-new LCV values declined for the second month running after reaching record levels earlier in the year.
Values fell by £113 (0.8%) to £12,920 in May with CAP comparisons down one point to 96.4%. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.