Average LCV values fell 1.8% to £8,885 at BCA in August, hitting their lowest monthly average value recorded since 2021.
The fall follows similar drops between June and July and values have now declined steadily since the highpoint recorded in March of this year.
BCA said the changing mix of stock and rising numbers of lower-grade vehicles were major factors influencing values over recent weeks.
However, sold volumes of light commercials remained consistent, with sellers and buyers being reasonably aligned in terms of price expectation. Monthly buyer numbers continued to increase and reached their highest point this year in August.
Performance against price guides has also improved over recent weeks, sitting at 99.9% in August. Demand for the very best condition light commercial vehicles continued to significantly outstrip interest in more poorly presented vehicles.
Stuart Pearson, BCA’s COO UK, commented: “August continued the now well-established trend of a two-tier market, with significant levels of demand and very competitive bidding for well-presented, better-grade vehicles, with challenging conditions for poorer quality stock – particularly where higher volumes of repeat models have a significant influence on bidding activity.”
Pearson added: “This is a good time to remind sellers that the remarketing basics remain as important as they ever were. Where appropriate, mechanical and cosmetic repairs will add value and improve first-time conversion, and the right level of preparation and clear transparency around vehicle provenance will also contribute towards achieving optimum value and speed of sale.”
He also stressed the need for a sensible reserve setting strategy that attracts the highest number of bids and achieves the best values overall.
“With the diverging market driven by the focus on not just quality but value, any overly optimistic pricing strategies will be found out quickly.”
The outlook for the autumn auction marketplace is also more confident.
Pearson concluded: “There’s been a lift in activity in the last few weeks, interestingly aligned with a positive shift in volume, so there’s the anticipation that the autumn LCV market may prove to be a more positive one that seen in the last few months.”
