Van prices recover in August
Average values for LCV’s at BCA rose in August, halting a three-month decline. Trade activity picked up in advance of the expected September rush and values improved by £99 to £4,211 in August, compared to the £168 fall recorded in July.
It is the first sign of value improvement recorded since the spring months and the record values achieved in April. It also underlines the return of seasonal trends to the marketplace, with a slower summer season leading into a busier autumn period.
Duncan Ward BCA’s General Manager - Commercial Vehicles commented “Professional buyers were notably more active in August, buying stock to get ahead of the game before the anticipated hike in demand expected in September. Buying was still selective, however, with well-specified vehicles in good condition outperforming the market by a considerable margin, with little appetite for vans requiring refurbishment or repair. The buyers serving the retail market are looking for retail-ready vehicles to take away and sell tomorrow, not vehicles to sit in the repair bay or spray booth. High mileage and scruffy condition is a major turn-off, unless the vehicle is a rare and desirable specification.”
He added “The budget market is more forgiving and tends to attract the non-trade buyer in greater numbers. A decent combination of condition, colour and specification is usually enough to stimulate interest even at a higher mileage, although obvious cosmetic damage is a big turn off.”
LCV values averaged £4,211 across the board in August, a 2.4% improvement against July’s values, with nearly-new and part-exchange values increasing. Fleet & lease average values, however, fell back.
Average fleet/lease values fell by £73 (1.5%) to £4,757 – a similar decrease to that recorded in July. Values have now fallen for four months in a row, following a run of six consecutive ‘record months’.
Part-Exchange values improved by £59, following a £187 fall the previous month. It is the first increase recorded in average values in this sector since April.
Nearly new values improved from £10,875 in July to reach £12,383 in August. Volumes remain low as they have done for many months and model mix will have had a major part to play.
Year-on-year values remain ahead by £466 or 12.4% in August and average monthly values remain well ahead of the £4,000 ‘price barrier’ that was breached for the first time in December 2009.
Generally, CAP figures for used LCVs improved notably in August, with the exception of the nearly–new sector which fell sharply. The across-the-board figure rose over one and half points to 98.18%, while CAP values for fleet vans improved by 1.7 points to 98.3%. Part-Ex vans were the best relative performers, improving four points to 99.97%. Average nearly-new CAP figures fell by nearly ten points, although numbers are so small that this figure has little relevance to the broader picture.
With less stock about in August, conversions improved with sold volumes reasonably static. Unsold stock remains an issue on some higher volume models, and vehicles need to be priced very much in line with market sentiment.
Fleet & Lease Vans
Although values have fallen for four months in a row, average fleet/lease values remain well ahead compared to the same month in previous years – over £700 higher than August 2009 and nearly £1,250 ahead of the same month two years ago. Values are over £1,700 ahead when compared to the bottom of the market in December 2008.
Part-Exchange Vans
Average values for Dealer-entered part-exchange stock are broadly on a par with the same period last year – just £60 separates the 2010 figure from the value recorded in 2009 – compare that to the £700 plus difference in fleet van values and over £3,000 in the nearly-new sector. Values peaked in February 2010 at over £2,800 and – broadly speaking – have been declining since then.
Budget-priced vans remain an important part of the market, particularly for the self-employed small business sector that often cannot afford to invest larger amounts on their company transport. The fact that CAP Values neared 100% in August is indicative of the demand in this sector, particularly when considering that the average age is approaching seven years with an average mileage of nearly 90,000 miles.
Nearly-new Vans
Nearly new values improved to £12,383 in August, compared to £10,875 in July. Volumes remained low as they have done for many months and prices are erratic as a result. Performance against CAP dropped sharply to below 90%.
