Fleet van prices still rising
Strong demand continues to fuel prices in the used van market according to BCA, as March 2010 recorded the second highest average value on record, according to the latest Pulse Report.
Used LCV’s averaged £4,500 across the board in March, a fall of £85 (1.8%) compared to February’s figure. Despite this, fleet/lease values rose marginally by £19 to reach £5,126 – a new record value. Nearly new values increased by £371 to £10,036, a rise of 3.8% - although volumes were very low in the month. Part-Exchange values fell by £176 from £2,819 to £2,643, equivalent to a fall of 6.2%.
Over the quarter, van prices averaged £4,507, a significant increase of £593 (15.15%) compared to the figure of £3,914 recorded in Q409. With Q109 values averaging just £3,182, year-on-year values were ahead by £1,325, equivalent to a 41.6% increase over the year.
Reflecting the strong price performance, CAP figures remained strong in March, moving from 101.67% across the board to 102.28%. All major sectors – fleet & lease (101.66%), nearly-new (104.33%) and dealer part-exchange (105.28%) – recorded average CAP prices in excess of 100%.
BCA’s Duncan Ward commented “The used LCV market has seen an exceptionally strong start to 2010. Values are significantly ahead of those recorded in 2009, and if demand stays at current levels we would expect prices to remain firm going forward.”
Fleet & Lease Vans
Average values continued to climb in the fleet van market, with March recording a small rise of just £19 over February’s figures. Values have risen for eight out of the last nine months. It is the highest average monthly value ever recorded for fleet and lease vans by BCA and only the second time on record that average values for fleet & lease vans have exceeded £5,000.
Part-Exchange Vans
Average values for Dealer-entered part-exchange stock fell for the first time since October last year. However, the price performance in February was exceptional, and any month-on-month fall must be seen as relative to that strong performance. In fact,March’s figure was the second highest on record.
Despite much increased new van activity, P/X volumes in March were very similar to those seen in February. CAP performance at 105% plus remains exceptional for stock averaging over seven years of age and nearly 90,000 miles and underlines the on-going demand for ‘budget’ vehicles.
Nearly-new Vans
Nearly-new values improved for the second month running, although with numbers remaining very low during the month, it is model-mix – as well as demand – that is keeping prices firm.
