Used LCV values up despite continued high volumes, reports BCA
Light commercial vehicle values improved in February despite volumes remaining high in the remarketing sector, according to latest BCA data.
Pulse figures for February show that the headline average value rose to a record level of £6,549, representing an increase of £140 over January’s figure as well as the second month of growth. Year-on-year, average values were up by £701, equivalent to an 11.9% uplift, but a younger stock profile across the marketplace played a role.
BCA also noted that average selling price is being influenced by rising numbers of vehicles being defleeted from daily rental sources. As a result of these factors, the last five months have seen the five highest average values on record and average LCV values were up by £508 (8.6%), year-on-year.
Within the fleet and lease LCV sector, average values improved by £81 (1.1%) to £7,179 in February – the third highest monthly figure on record. Retained value against MRP (Manufacturer Recommended Price) improved from 35.81% to 36.02%. Year-on-year, values were up by £554 (8.3%), with average age and mileage declining when compared to the same period in 2016.
BCA’s LCV operations director, Duncan Ward commented: “While the markets in February have recovered from the supply hangover experienced in January, average selling price and falling mileage are being influenced by the rising volumes reaching the market from daily rental sources, with many examples being less than three years old.
“Looking at the bigger picture, as the used market is driven by the appetite from the SME sector, there is no reason to suggest any significant long-term softening in demand, particularly with recent surveys suggesting improved confidence in small business sectors and an expanding economy according to the ONS.”
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