BCA sees continued demand for vans

The latest report from leading vehicle auction company, British Car Auctions (BCA), has shown the fourth month of sustained demand for light vans, suggesting a level of continued confidence in the business marketplace. “Having spent most of 2008 in the doldrums, there is a lot more confidence in the used LCV market in 2009”, confirmed Duncan Ward, British Car Auctions. “And that is reflected in stronger bidding, higher conversions and prices that have improved since the turn of the year.”

Although BCA reported a small downturn in the average prices achieved for light commercial vehicles in April, which fell by £71 to £3,473 compared to March, values are still well ahead of the low point of £2,772 recorded in December 2008. Demand for light vans has been very strong in 2009 and BCA remains confident that this interest will be maintained well into the second quarter.

“Despite the small reverse in April, LCV values are currently much stronger than those recorded at the back end of 2008” confirmed Duncan Ward. “The rise in average values has been good news for professional vendors at auction and obviously reflects an active retail market. Dealers say sourcing stock is currently their biggest issue to meet the demand in their showrooms. BCA believes improved confidence from established businesses and the needs of new start-ups is behind the improving market for used LCVs.

Ward added “The wave of redundancies and closures we have seen in the last few months will result in many professional and trades people striking out on their own – a light van is often an essential purchase for a new small business venture. And more established companies will have put 2008 behind them and are again ready to invest in the infrastructure of their business.”

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.