Light commercial vehicle values fell back from the record levels reached in April according to BCA’s latest Pulse report, although May still recorded the second highest average monthly value since Pulse began reporting in 2005.
The average May figure of £4,870 for all LCVs represented a fall of £128 (2.5%) compared to April. Average age fell back to just under 58 months, although average mileage increased slightly during May. Both fleet & lease and dealer part-exchange sectors saw values decline from the previous highpoints recorded in April.
Year-on-year, May 2013 was ahead by exactly £500 or 11.4%, with both age and mileage rising over the period.
BCA’s Duncan Ward commented “Although values declined by around 2.5% across the board, demand remains strong across the range of used light commercials at BCA. Even so, buyers are sensitive to mileage and condition, and excessive mileage or damage will significantly impact the price performance. The best prices are paid for vans in good colours with a high specification and any rare or unusual vehicles will generate the most attention.”
He added “After many months of strong value growth, where is the market going in quarter 3 and quarter 4 of this year? Many have suggested that prices simply cannot continue rising and they may level off. Or will prices remain stable but with a widening of the extremes – will the poorly presented vehicles be overlooked in favour of the more desirable vehicles?”
Ward added “With the first decline in average values seen this year, now would be a good time for volume sellers to review their selling strategies and make sure they are fully in tune with market sentiment. Vans should be sensibly valued to sell and corporate sellers should offer LCVs with full documentation and service histories and ensure they are presented in the best possible condition following pre-sale preparation. Sellers also need to manage the supply of similar makes and models, because it can have a direct impact on price performance – even for attractive retail-quality vans.”
Values in the fleet & lease LCV sector fell from April’s highpoint to £5,942 in May, a decline of £229 (3.7%) but still the second highest value on record for corporate LCVs. Performance against CAP fell back by nearly two points to 99.1%, while retained value against Manufacturer Recommended Price fell back to 36.05% compared to 37.17% recorded in April.
Year-on-year values remain well ahead, up by £829 (16.2%) compared to the same month in 2012 – with average age and mileage down over the year.
Part-exchange van values also fell in May, by £192 (5.6%) to £3,171. CAP comparisons at 102.5% continue to outperform the fleet & lease sector, while year-on-year values remain ahead by £247 or 8.4%, with average age and mileage up slightly compared to a year ago.
Nearly-new LCV values improved in May by £1,555 (13.7%) to £11,286 with CAP performance improving marginally to 98.52%. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.