Average LCV values at BCA have continued to bounce back, showing the stability of the used marketplace.
Its latest figures reveal values averaged £10,220 in July, up by 4.2% or £420 compared to June, with performance against guide prices steady at 95.7% over the month.
July’s growth follows a 3% rise in June 2022 and year-on-year, values were up by £100 (1.2%) compared to July 2021.
BCA said the rise in average values was down to improved demand and rising buyer numbers, following consecutive monthly falls from the all-time market highpoint of £10,808 recorded in January of this year.
It also noted that sale conversion rates have improved by several percentage points in recent weeks, with a notable rise in demand across the 4×4 market and continued interest for conversions and body builds.
But the firm warned that demand is relatively fragile, with professional buyers focusing on the best-quality, forecourt ready stock that can be retailed quickly with little additional preparation.
It also highlighted that demand is patchy at the lower end of the market, with poorer condition, higher-mileage vehicles struggling to gain interest with buyers, and any hint of an oversupply quickly affecting values of standard specification models.
Stuart Pearson, BCA COO UK, commented: “Given the well-documented cost-of-living squeeze and numerous other pressures affecting the wider economy, the LCV sector continues to demonstrate the underlying strength and stability of the used marketplace. To this end, we continue to work with our sellers to deliver condition enhancements through effective and targeted refurbishment, accurate appraisals and realistic valuations that give their vehicles the best chance of selling quickly.”
Pearson also said that average values were boosted to some extent by improvement to product mix, albeit it there was also some seasonal impact on volume.
“As we are seeing in the car market, it is apparent that a two-tier market has developed, where the best presented vehicles readily attract strong bidding and poorer stock will struggle unless it is very competitively valued. As ever, focusing on the remarketing basics of realistic pricing, clear and accurate vehicle provenance information along with appropriate preparation, will ensure that there is a buyer for all stock, regardless of age, mileage and condition.”
Values are also expected to remain reasonably resilient in the medium to long term – despite the obvious pressures in the used sector – due to ongoing declines in new LCV registrations, as the sector continues to face supply chain issues and long delivery times.
Pearson explained: “It means that any business requiring a commercial vehicle at short notice will have to source it through the used sector, which should generate sustained demand and relatively stable pricing in the wholesale markets for some time.”
