LCV values still rising

LCV values continued to increase to record levels at BCA in Quarter 2, 2007, according to latest price information from BCA’s Pulse Commercial Vehicle Report. Average values for fleet & lease stock broke the £4,000 barrier for the first time and are up 14% year-on-year. Part-exchange values were £300 ahead of last year and nearly-new values £600 up on the same period in 2006.

BCA's UK Business Development Manager - Commercial Vehicles Duncan Ward comments “Any signs that the market may have been softening in the early summer have not been realised. June values for fleet and lease vehicles leapt ahead, reversing a two-month fall to finish at £4,084 – the second highest monthly value we have recorded and contributing to an overall record value for the quarter.”

“Similarly, part-exchange values remained uniformly strong throughout Quarter 2, also establishing a record value at £3,424. Average values actually exceeded £3,500 in May, the highest monthly figure BCA has recorded. And with the manufacturers offering a number of new models to auction buyers for the first time, nearly-new values are also well-ahead of last year.”

Ward added “The market is in good health, but with interest rate rises yet to really bite we should still be mindful of potential pressure on values. Even while the commercial market seems relatively immune, price levels are important and buyers are increasingly ‘price led’. The market for vehicles in clean, retail-ready condition will remain strong, but for LCV’s in average condition there could be price pressure later in the year. With this in mind, buyers are avoiding anything that needs repair or bodywork and vans that are scraped, lettered, with abused interiors, rips and damaged plastics are generally being overlooked.”

Fleet & Lease Sector: In Q2 07, reflecting the strong and sustained market that BCA and other commentators are reporting on, average values for fleet & lease LCV’s rose for the fourth quarter running to break the £4,000 watershed for the first time. A rise of £124 against the previous quarter was recorded as fleet & lease vans averaged £4,039. Year-on-year, values are up by nearly £500, a 14% rise.

The average age of fleet & lease vehicles at remarketing remained static after falling by nearly three months in Q406, while average mileage rose to nearly 72,000 – the highest figure recorded in 18 months. CAP performance fell by a couple of points against last quarter to 99.3% - but was up by 2.4 points year-on-year.

LCV Average Values - Fleet & Lease Sector

The value of the small numbers of petrol/LPG units available to the used market increased significantly in Q2. After falling by £530 (16%) in the last quarter, values recovered strongly to end at £3,152, a rise of £378 - a 13.6% increase. This is the second highest quarterly average recorded for LPG vans from fleet & lease sources.

LCV Average Values - Fleet/Lease LPG/Petrol

The Part Exchange Sector: In line with the fleet/lease sector, average quarterly values for vehicles from part-exchange sources also achieved record levels in Q207, improving by £180 to £3,424. Both age and mileage averages remained relatively static after big swings in Quarter 1, while CAP performance fell by 1.4 points to sit at 97.9%. Year on year, CAP performance for part-exchange LCVs remains ahead by 3.1 points.

LCV Average Values - Part-Exchange Sector

Nearly-New Sector: After falling last quarter, nearly-new values increased by nearly £300 in Quarter 2, 2007 to £10,583 – an increase of 2.7%. Average age fell slightly, as did average mileage at remarketing. CAP performance fell by nearly 4 points to 102.8%.

LCV Average Values - Nearly-new Sector

A look at the price trends across the three sectors going back to the start of the fourth quarter last year highlights the relative stability of the fleet/lease and PX markets in comparison to the nearly new.