According to NAMA, average values of used LCV’s at auction across the board rose by 7.7% from £4,346 to £4,681, and total sales also saw a healthy increase of 14.9% from 7,929 to units.
The report suggests that demand for vans and pick-ups of all ages has remained high, showing business confidence has strengthened and the economy is improving.
The volume of LCVs being sold at auctions across the UK grew sharply in October, but the average age and mileage of these lots was lower. As a consequence, NAMA reports that prices responded positively and conversion rates hit a high of 78%.
There were significant increases across each age band in October, with the ranks of less than two years old LCVs up by 52%.
NAMA predicts that values will remain healthy to the close of the year.
Commenting on the figures, Alex Wright, chairman of NAMA Commercial Vehicle Group, said: ‘October highlights a buoyant month for the LCV sector – volumes, conversion rates and prices grew by 14.9%, 5% and 7.7% respectively, and average age, mileage and number of days in stock each fell by a significant amount.
‘Vehicles perceived by buyers to be at the end of their life will find the market could become overloaded. It is possible that buyers are going to have to pay more for lesser lots with vendors needing to maximise returns from ageing stock that is in short supply. The key is going to be keeping supply and demand in balance and managing expectations as to what lies ahead.
‘We anticipate the first half of 2014 to do encouragingly well thanks to the UK’s growing economy and speculation as to just how long these buoyant market conditions are likely to prevail, should be replaced by implementing actions that ensure that they will be long lived.’