BCA reports decline in used LCV values in April due to volume rise

Despite this, April’s average value of £5,395 for commercial vehicles was the second highest on record since BCA Pulse began reporting in 2005.

According to the report, every sector saw a fall in value as fleet & lease LCV values declined by £314 (4.4%), part-exchange van values fell by £162 (4.3%) and nearly-new vans posted a fall of £2,152 (14.1%) – although this latter figure will have been as a result of changing model mix in a very low volume sector.

Values for all light commercial vehicles decreased to £5,395 in April – a fall of £162 (2.9%) compared to March’s average value. Volumes rose during April with a greater percentage of fleet & lease stock sold, resulting in a richer mix of vehicles in the marketplace.

Year-on-year values remain ahead, up by £397 (7.9%) over the twelve month period.  Compared to a year ago, age is static at 58 months, while mileage has increased by around 3,000 miles on average over the same period.  Average CAP performance improved by half a point compared to April 2013.

Commenting on the findings, BCA’s CV general manager, Duncan Ward, said: ‘Although April’s values were the second best on record and are significantly higher than the same period last year, the market slowed over the extended Easter and May Bank Holiday period and sale conversion rates have fallen back. Volumes have risen quite noticeably, meaning there is more choice for buyers and this has impacted on average values.

‘We are now moving into what has traditionally been a time of slower demand and we may see some seasonal pressures on values over the coming three to four months. We should expect retail-ready LCVs to be very desirable with values to match, but vehicles presented with damage, in poor colours or with excessive mileage will need to be realistically valued if they are to sell first time.  In particular, the double cab market has seen values fall sharply, largely as a result of the rising volumes of basic spec vehicles combined with a softening of demand as the summer months approach.

‘There are signs that sellers are being more pragmatic about values, as performance against CAP declined noticeably compared to March.  Dealer part-exchange vehicles saw performance fall around four points down to 102.0%, with corporate vehicles falling by two points to 100.5%,’ he added.

Values for fleet and lease LCVs declined by £314 (4.4%) in April to £6,735, with both CAP performance and retained value against Manufacturer Recommended Price declining.   Year-on-year, values were up by £564 (9.1%), although performance against CAP was slightly down on 2013.

Year-on-year table: All vans