Van values slip but market still confident says BCA
According to BCA’s latest Pulse report, average values for light commercials have slipped for the first time this year, after three consecutive months of growth. Average values fell back by £71 in April, after posting a £400+ increase in March. Values are well ahead of the low point of £2,772 recorded in last December, but equally remain some way adrift of the market peak of £3,868 seen in January 2008.
Average values across all LCVs fell in April by 2% to £3,473, compared to March’s figure of £3,544. Values are now £701 ahead of December’s low point, but remain £313 behind year-on-year. Average guide values also slipped – by nearly 4 points to 96.3% – after breaking the 100% barrier last month.
Despite the small reverse in April, demand for light vans has been very strong since the turn of the year and BCA remains confident that this interest will be maintained well into the second quarter.
BCA’s Duncan Ward commented “Having spent most of 2008 in the doldrums, there is a lot more confidence in the used LCV market in 2009 and that is reflected in stronger bidding, higher conversions and improving prices.”
He added “Despite the small reverse in April, LCV values are currently much stronger than those recorded at the back end of 2008. The rise in average values has been good news for professional vendors at auction and obviously reflects an active market at retail level. Dealers say sourcing stock is currently their biggest issue to meet the retail demand and increased competition is keeping values keen.”
Ward continued “As the biggest volume provider into the used market, the fleet & lease sector has been integral to the overall improvement in average used values this year, with the sector recording an £800 plus increase in the past six months. However, April’s price performance will not have been helped by the distraction of the Easter Bank Holidays falling in the month, which the trade finds disruptive to business.”
Fleet & lease fell back by £90 (2.3%) in April to £3,379, with a four-point drop in CAP performance. Despite this, the market remains bullish and values are still £767 ahead of where they were at the back end of 2008. Year-on-year values remain down, however, by £347.
Values for dealer-entered part-exchange stock were broadly static in April, with a small drop in value offset by a 6,000-mile rise in average mileage. CAP performance fell back by two points after significant improvements in previous months – even with this fall, CAP performance in this sector is some 20 points ahead of December’s figure. P/X volumes remain subdued as dealers are retailing a greater number of these vehicles, rather than trading them – this relative shortage has helped values improve sharply in 2009.
Values for nearly-new vans at auction continued to improve – the only sector to post an average increase in April. Average values rose by £51 (0.5%) to £9,042 and a CAP performance of 102.68%. Year-on-year values are down by over £1,150. Volumes are small in this sector, however, and model mix will have an effect on average values.
