LCV values slow at auction in lead-up to summer

BCA’s head of commercial vehicles, Duncan Ward, commented: “History shows us that the commercial vehicle market typically slows over the summer months and we would expect to see some pressure on average values between now and the new registration plate in September. While average selling price appears to be holding up, this is largely due to the influence of a younger, lower mileage profile of vehicles currently reaching the market.

“As buyers get more selective and focus on the best presented vehicles, the increasing volumes of poor condition, low specification vans are impacting conversion rates.  This less desirable stock, typically in corporate colours, needs to be competitively valued if it is to sell first time.

“There is nothing to be gained by placing over-aspirational reserve valuations on LCVs if the market is not prepared to meet those expectations,” he added.

Year-on-year table: All vans

The fleet and lease sector recorded average values of £6,754 in June, falling by £32 (0.4%) compared to May. Retained value against MRP (Manufacturer Recommended Price) fell to 35.11% from 35.7% the previous month. Year-on-year, values were found to be up by £415 (5.3%), with performance against MRP almost static.  Both age and mileage have dropped over the year, with mileage falling by over 7,000 miles.

Year-on-year table: Fleet & lease vans

Nearly-new LCV values averaged £12,406 in June. “As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor, as well as the continuing availability of ‘new shape’ models reaching the used market,” added Ward.