November rally for LCV values
November recorded the highest average LCV values for two years as buyers competed strongly in the auction halls and online, according to British Car Auctions (BCA). Average van prices increased to £3,902 from the £3,858 recorded in October, and even outpaced the January 2008 high point of £3,868.
The rise of £44 – equivalent to a 1.2% increase – may be modest but will be welcomed by vendors as there were indications that values may have already peaked earlier this year. However, another strong month in the auction halls at BCA saw values climb yet again.
Model mix was broadly the same, although reduced numbers of higher value nearly-new vans were sold in November, which makes the increased average value seem relatively even stronger. Volumes were slightly down on last month.
BCA’s Duncan Ward commented “Year-on-year values are now ahead by an astounding £1,089 – the biggest year-on-year margin on record and reflecting both the strong performance in November 2009 and just how weak the LCV sector was in November 2008.”
Despite the average price increase, performance against CAP continued to fall and settled at 98.36%, with a further 3 points lost against last months average. CAP performance has fallen by over six points in the last two months alone.
Fleet & lease van values were the main beneficiary of the increase as prices increased by £146 to £4,344 (up 3.5%) – the highest average value on record. Average age and mileage remain little changed over the past 24 months at around 41 months and 62,000 miles, although both price and CAP performance have been on a rollercoaster ride.
Ward commented “End users have remained very active in the marketplace and delivery firms expanding capacity in advance of Christmas have no doubt buoyed the average price. Year-on-year, fleet & lease van values in November 2009 are £1,256 – a staggering 40.6% - ahead of the same period last year.”
He added “Despite the increased average values, condition remains critical and bidding is noticeably lighter on any vehicle that is carrying excessive damage – cosmetic or otherwise. In short, good, clean vehicles are meeting market price expectations and more, while poorly presented LCVs will often struggle for attention – a two-tier market in other words.”
Dealer-entered part-exchange stock rallied after recording a comparatively large fall of £104 (4.2%)in October. Values climbed by £44 (1.75%) from £2,487 to £2,531 and while performance versus CAP fell by three points to 100.412%, this remains the highest performing sector.
Nearly-new values continue to rise – up from £11,238 to £12,158 – but numbers were very low during the month, meaning that model-mix – rather than demand – was largely responsible. As seen last month, nearly-new vans performance against CAP continues to fall – down 99.43% to 93.88% over the month.
