NAMA reports that after the strength of sales seen in October, it was to be expected that November’s figures would struggle to impress. With average age and mileage having risen, it is natural that prices have declined.
Over the past year, sales volume grew by 20%, average mileage and age for LCVs increased by 3,116 miles and 3.8 months respectively. Yet encouragingly, according to NAMA, both the number of entries required to sell each LCV lot and days on site were slightly lower, whilst conversion rates and prices improved by 3% & 7%.
The price falls recorded in November correlate closely with the pattern of mileage increase recorded across the various age bands, making them less attractive to trade buyers looking for desirable stock.
Alex Wright, chairman of NAMA Commercial Vehicle Group, commented: ‘In last month’s NAMA report, the strength of the marketplace for LCVs had hit a high point with the general sentiment being that things were as about as good as they were going to get. Therefore, the -3.6% decline of average values of used LCV’s at auction across the board, is not a true reflection of the increase in age and mileage.
‘The market is clearly still on at an all-time high with no visible signs of it ending anytime soon. It is unlikely that there will be any marked uplift in the wholesale marketplace for LCVs until the New Year has found its stride, yet at that point there is every prospect that a series of strong months can be delivered. With the UK's economy performing better than had been predicted, it is likely that 2014 will be another profitable year for our industry.'