Competitive market leads to continued rise in LCV values

Demand for LCVs remained strong throughout the month and with the best quality stock in short supply, values continued to rise. According to BCA, fleet and lease LCV values broke through the £7,000 barrier for the first time.

Nearly-new vans also posted a record value as buyers competed strongly for the stock on offer.

Values for all light commercial vehicles increased to £5,557 in March – a rise of £212 (3.9%) compared to February – as buyer demand continued at exceptional levels. March’s average value was the highest since Pulse began reporting in 2005.

Year-on-year values remain well ahead, up by £697 (14.3%) over the twelve month period. Compared to a year ago, age has risen by nearly two months to over 60 months, while mileage has decreased by around 3,000 miles on average over the same period. Average CAP performance improved by half a point compared to March 2013.

Year-on-year table: All vans

Commenting on the figures, BCA’s general manager – commercial vehicles, Duncan Ward, said: ‘Values remained strong in March, as the combination of limited supply and good levels of demand in the remarketing sector saw prices rise for corporate stock and older dealer part-exchange vans. LCV values have been universally strong throughout the first quarter of this year and are significantly higher than the same period last year.

‘If anything, the market has been even more competitive over the past few weeks and well-presented LCV’s are routinely outperforming guide expectations – often by a considerable amount. The auction halls have been very busy across the BCA network, while the number of buyers participating via BCA Live Online continues to rise.

‘There can be little doubt that the improving economic background is giving a boost to the used LCV market, particularly as demand increases from the building and construction industries. Small and medium-sized enterprises (SMEs) remain positive about prospects this year, but cashflow is a problem for some and that may impact any decision on replacing their workhorse vans.’

‘We expect demand to remain strong in April, but post-Easter, we know from experience that values typically soften over the late spring and early summer months. There are also indications from the Confederation of British Industry (CBI) that while the economy is still growing, the pace is slowing and this may be a factor moving forward,’ he added.

Values for fleet and lease LCVs also improved to record levels in March, rising by £239 (3.5%) to £7,049 – the highest average monthly value on record. Year-on-year, values were up by a significant £1,142 (19.3%), as average values continued to race ahead in the light commercial sector. Performance against CAP improved by more than a point to 103.21%, while retained value against Manufacturer Recommended Price (MRP) improved to 39.22%.

Year-on-year table: Fleet and lease vans