Average LCV values at BCA fell 4.5% in June, hitting the lowest monthly average value recorded in over two years.
Values were down by £434 compared to May, but BCA said a shift in stock mix had heavily influenced the movement compared to earlier in the year.
Sold volumes of light commercials remained positive across BCA’s daily programme of online LCV sales as buyers and vendors remained reasonably aligned on pricing expectations. Buyer numbers continued to rise month-on-month, as they have for most of this year.
Performance against price guides fell to 97.5% (from 98.9% in May), further underscoring the widening disparity between values paid for the very best condition LCVs and those achieved by more poorly presented vehicles.
Stuart Pearson, BCA COO UK, commented: “The two-tier market developing in the LCV sector is typically seen when volumes rise with an influx of poorer quality stock affecting the mix. Vendors are increasingly aware that vehicles in poorer condition have to be valued realistically to generate attention from buyers. This is exacerbated when corporate volumes of similarly specified, base colour and often poor condition vans are added to the mix – these have to be carefully managed to avoid depressing overall values.”
Pearson added that interest for well-presented, better-grade vehicles – able to be purchased and retailed from the forecourt quickly – remains as high as it has all year.
“We continue to see some exceptional values generated for LCVs with a strong retail specification and in a good colour, particularly for vehicles with a relatively low mileage and on a recent registration plate.”
He added: “Whatever the market conditions, valuing stock in line with market expectations is critical to successful remarketing. Supply and demand will always influence values, with the best quality stock continuing to attract premium prices and sellers needing to pay close attention to the condition of older stock.”
