CommercialFleet

Fleet and lease used LCV values rise for first time since March

Duncan Ward, LCV operations director at BCA

The fleet and lease sector recorded average used LCV values of £6,416 in September, an increase of £228 (3.6%) over August and the first monthly rise in values since March of this year, according to BCA.

CAP performance rose marginally to 99.3% and retained value against MRP (Manufacturer Recommended Price) improved slightly to 33.95%.   Year-on-year, values were down by £134 (2.0%), with performance against MRP down by more than two percentage points.

Overall, BCA recorded an exceptionally strong month in the light commercial sector as average values rose across the board, reversing a two month decline. 

Average values across the board rose by exactly £100 in September, equivalent to a 1.8% uplift compared to August. 

Year-on-year values were ahead by £47 (0.8%), with the average van in 2015 being slightly younger but noticeably lower mileage, down by 5,000 miles at 75,000.

Duncan Ward (pictured), LCV operations director, said: “We are now seeing the return of more typical market conditions with balanced supply and demand and elements of seasonality taking effect.  The market was strong in September with average values increasing across the board and good levels of demand from buyers for well presented, good quality commercial vehicles.”

“However, we continue to see a large number of vehicles in poor condition and this has a significant impact on price and conversion rates.  The difference in average value between a condition 5 and a condition 4 van is several hundred pounds and around 12 percentage points when compared to CAP.  Average conversion rates rise sharply as condition improves, underlining that condition equates directly with saleability and demand.”

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