CommercialFleet

Increased volumes and poor vehicle conditions put pressure on LCV values

Average values for light commercial vehicles fell marginally for the second month running, as rising volumes of stock continued to reach the wholesale markets. 

Values declined from £5,544 in July to £5,507 in August, a fall of £37 (0.6%) over the month.

While fleet & lease values declined by £92 over the month, dealer P/X stock rose in value by £87 to the highest point seen this year.  

There was also a fall in the average value of nearly-new stock, largely as a result of changing mix in a low volume sector.

BCA’s head of commercial vehicles, Duncan Ward, said: “We commented earlier this year that values were likely to come under pressure over the summer months, as a result of rising volumes, an increase in poor condition vehicles and the strong new van market.”

He added: “With the benefit of hindsight we can also now see how the shortage of retail quality stock, combined with the rising demand for LCVs as the economy improved, pushed average prices up over an extended period.  Average values climbed steadily throughout 2012, 2013 and 2014, with month-on-month and year-on-year growth becoming the norm.”

“Of course, that was never going to be sustainable indefinitely, and we are now seeing the return of more typical market conditions with balanced supply and demand and elements of seasonality taking effect.  The good news is that the market has maintained relatively strong average values across the board and there is plenty of interest from buyers for well presented, good quality commercial vehicles.”

The fleet and lease sector recorded average values of £6,188 in August, a fall of £92 (1.4%) compared to July. 

CAP performance rose marginally to 99.24% and retained value against MRP (Manufacturer Recommended Price) declined by half a point to 33.7%.  

Year-on-year, values were down by £617 (9.0%), with performance against MRP down by three percentage points - a reflection of the shortage of stock in August 2014 which kept values high.

Fleet/Lease

Avg Age (mnths)

Avg Mileage

Avg Value

Sale vs CAP

Sale vs MRP

August 2014

42.18

71,065

£6,805

102.95%

36.88%

August 2015

42.42

69,757

£6,188

99.24%

33.79%




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