LCV values rise again – fleet & lease stock in demand
Following January’s average value increase, there was more good news for vendors in February as average used LCV values climbed for the second month running. Data from BCA’s monthly Pulse report shows that average values have climbed back above £3,000 for the first time since October, but still remain well behind the market peak of £3,868 recorded last January.
Values climbed in February by 6.6% to £3,117, a rise of nearly £200 against January. Values are now 12.4% (or over £350) ahead of December’s low point, but remain £647 behind year-on-year. Guide values improved by seven points over the month to sit at 96.89%.
Duncan Ward BCA's UK Business Development Manager - Commercial Vehicles commented “With the LCV market experiencing exceptional demand since the turn of the year, it is no great surprise to see used values climbing for the second month running. The fact is that LCV values had reached a very low base by the end of last year and a recovery in average price was somewhat overdue.”
According to BCA, much of the recovery is being driven by the fleet & lease sector, where average values have improved from £3,012 (83% CAP) in December to £3,359 (97% CAP) in February. Dealers say sourcing stock is currently their biggest issue to meet the improved retail demand.
Ward commented “This is the biggest volume sector at auction, so for February to record an average price increase of nearly £200 over January is significant. CAP performance has also improved again, rising over seven points in the month to reach 97%, following a six-point increase last month.”
“The change in the market dynamics over just a few weeks is dramatic. Buyers are competing strongly across the board, and even stock with cosmetic damage is attracting a flurry of bids, which simply was not happening in 2008. As far as values are concerned, well-presented retail quality vans are outstripping guide values by a considerable distance. We are also seeing significant activity from online bidders through our Live Online service as dealers widen their search for the right stock.”
Prices have also improved in the part-exchange sector in February, having fallen quite sharply towards the end of last year. Month-on-month values improved by £59 to £1,885, although values remain some £450 behind the highest figures recorded last year. CAP performance improved by eight points, following a ten-point increase last month. Volumes are still down as dealers are retaining a greater number of P/X vehicles for their own forecourts, rather than trading them.
Volumes of Nearly-new vans at auction are very low, so model-mix can have a strong effect on values. However, February saw average values increase for the first time since last October to £8,439 and CAP performance reach a new high point of 103%. Year-on-year, however, values are down by over £1,100.
Ward concluded “Demand has held up well in March so far and we are hopeful that this interest will be maintained well into the second quarter.”
