Average light commercial vehicle values rose in July, as supply and demand remained well balanced.
The headline value increased by £94 (1.4%), the third consecutive monthly rise, with fleet & lease and nearly-new values rising and dealer P/X values falling back.
Year-on-year values remain well ahead, up by £622, equivalent to a 10.4% increase over the period. Average age and mileage continued to decline, reflecting the growing share of corporate stock sold as well as the higher volumes of younger rental stock seen over recent months.
BCA’s LCV operations director, Duncan Ward, said: “The market improved in July, with steady demand across the BCA network and strong performances at a number of LCV centres, notably Manchester which broke a number of performance records during the month. These strong results underline the intrinsic strength of the market and the demand from professional buyers for good quality commercial stock.
“Values remained firm at BCA with the growing volume of corporate stock handled by BCA helping to drive up the average sale price during the month.
“While demand for larger panel vans was sometimes patchy, there was plenty of interest in any van with a good retail specification and in particular dropsides, tippers and Lutons were much sought after.
“The lifestyle/4x4 double cab market continues to experience price pressure, largely as a result of the increasing volumes in this sector - basic specification models are more price sensitive than the higher trim models, which the second owner much prefers.
“Condition and specification remain as important as ever and sellers should be aware that it is vital to appraise and value vehicles accurately to reflect current market sentiment.”
The fleet and lease LCV sector saw average values improve marginally, with a £2 average increase in value from June. Average values have been relatively stable since October of last year, when they moved above £7,000 for the first time on record.
Retained value against MRP (Manufacturer Recommended Price) improved marginally to 36.72%. Year-on-year, values were up by £397 (5.8%), with average age and mileage declining when compared to the same period in 2016.
For the second month running, average part-exchange LCV values declined, falling by £50 (1.2%) to £4,012. Year-on-year, values were up by £264 (7.0%) as comparative age and mileage figures fell.
Nearly-new LCV values improved sharply in July, rising by £1,669 (12.3%) to £15,144, the highest point since November 2016, although as always, this has to be taken in the context of the low volumes reaching the market and the model mix factor, as well as the continuing availability of ‘new shape’ models reaching the used market.