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Fleet/lease values come under pressure as volumes climb

Rising light commercial vehicle volumes in January put pressure on average values and conversion rates, in particular for the fleet, lease and daily rental sector.

BCA found that the last four months have seen the four highest average values on record.

Latest BCA Pulse figures show the fleet and lease LCV sector saw average values fall back by £76 (1.0%) to £7,098 last month as a result of the rise in volumes. Retained value against MRP (Manufacturer Recommended Price) fell slightly to 35.81%. Year-on-year, values were up by £478 (7.2%), with average age and mileage declining when compared to the same period in 2015.

However, despite this, the headline average LCV value reached a new record level of £6,409 due to a richer mix of stock. The latest rise means the last four months have seen the four highest average values on record and average LCV values were up by £508 (8.6%), year-on-year.

BCA’s LCV operations director, Duncan Ward commented: “Typically, the best presented and specified vans outperformed the market by some margin, although higher mileage or damaged examples needed to be realistically valued to attract attention from the buyers. It underlines the importance of appraising and valuing vehicles sensibly and in line with market expectations.

“As we have seen in recent months, there is plenty of interest for any vehicles with an unusual configuration or special equipment and, as always, any vehicle suitable for the delivery or courier markets was sought after. Vehicles suitable for the construction and building industries remain sought after, with tippers and dropsides selling strongly.”

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Written by Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.

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