BCA’s Commercial Pulse report highlights that the fleet and lease sector recorded average values of £6,818 in April, an increase of £92 (1.4%) compared to March and the highest monthly value recorded since 2014. Retained value against MRP (Manufacturer Recommended Price) improved by 1.5 percentage points to 35.90%. Year-on-year, values were up by £359 (5.5%), with performance against MRP relatively flat. Notably both age and mileage have dropped over the year.
BCA’s LCV operations director, Duncan Ward commented: “Average values continue to rise for fleet/lease commercials, with both professional buyers and end users focusing on one owner vehicles up to five years old. Both age and mileage for corporate vans continues to drop and this is contributing to the steady price evolution seen over the past year. The better grade vans are selling strongly and making good money, while vehicles requiring work need to be priced in line with market sentiment to sell first time. Values for dealer part-exchange vans have been relatively static over the past three months while the nearly-new sector – despite being relatively very small – also saw average values rise.”
The headline average value of a used LCV sold at BCA also reached record levels in April. Values averaged £5,966 in April – a rise of £87 (1.4%) compared to March and the highest monthly headline figure on record since Pulse began reporting in 2005. Year-on-year values were up by £458 (8.3%) with the average van in 2016 being four months younger and with average mileage 3,400 miles lower.
Duncan Ward added: “Buyers were out in force in April with both physical and online bidders competing strongly for the stock on offer. Values are well ahead of where they were a year ago, underlining the evolution in price performance which has been driven by high levels of demand.
However Ward warned that presentation and condition “remain exceptionally important, particularly where there are increasing volumes of similar makes and models reaching the market. Poor condition – notably on higher mileage, hard worked vans – remains an issue and vehicles need to be properly appraised and valued to meet the expectations of the marketplace.”