Used van values rise sharply as stock issues continue
Average LCV values reached their highest point for 16 months in September, as the combined effect of stock issues and high demand saw values rise sharply, according to BCA’s latest Pulse data.
Figures for September show that average values increased by £353 (8.7%) to £4,409 from the £4,056 recorded in August. The increase reversed a run of three consecutive month-on-month falls.
Unsurprisingly, all three sectors - fleet & lease, dealer part-exchange and nearly-new values - increased in value month-on-month.
With stock remaining in short supply and ongoing strong buyer demand, conversion rates remained at high levels, with many vendors continuing to enjoy 100% conversions in individual sales sections.
Performance against Guide Prices remained exceptionally strong, with values across the board improving from 103% to 106% in September, with all three sectors of fleet/lease, dealer part-exchange and nearly-new achieving well over 100% for the second month running. Year-on-year values are ahead by £263, equivalent to a £400 plus positive swing over the month as values were behind by more than £150 in August.
Duncan Ward BCA’s General Manager – Commercial Vehicles commented, “We were confident to predict last month that September would see values rising, but the level of increase has been even greater than we expected.”
“We saw slightly more vans from corporate fleet sources in September, but demand is still outstripping supply. As a result the average value increase in the fleet and lease sector was nearly £400 compared to August.”
“Trade buyers are having to look further afield to secure the stock they need and we have seen a significant uplift in the numbers logging onto BCA Live Online and our Bid Now/Buy Now internet platforms. Many are looking at older, higher mileage vehicles or even damaged stock to satisfy their buying requirements. As a direct consequence we have also seen values rise in the dealer P/X sector, while demand for the very few late year, low mileage LCV’s remains intense.”
Values in the fleet & lease LCV sector broke through the £5,000 barrier for the first time since May 2010, when the market last peaked. Values rose by £390 to reach £5,041 (up by 8.4%), while year-on-year values were ahead by £159 (3.3%). Fleet vans averaged 105.5% of CAP in September, nearly a two point increase over August.
Part-exchange values improved to £2,753 - the second highest value on record and only beaten by the £2,819 recorded in February 2010. CAP comparisons rose by five points to over 107%, the best performance in the whole LCV sector and highest percentage recorded this year. Year-on-year values were ahead by £377 (15.8%).
Nearly-new values rose sharply for the second month running, climbing from £10,149 in August to £12,072 in September. As always, this has to be taken in the context of the low volumes reaching the market and the model mix factor. CAP performance improved by 2 points to 106.5%.
