That’s according to Alex Wright, managing director of Shoreham Vehicle Auctions, who says that average year-on-year prices released by NAMA have fluctuated by less than 5% between July and September, compared with the same period in 2014. Average year-on-year prices in September represent a drop of just 2.5% (£124), from £4,967 to £4,843 in September 2015, compared to the same month in 2014.
Average prices, year-on-year have continued to remain stable throughout Q3 2015, staying consistent with yearly fluctuations previously seen throughout the year, as prices between January and September have remained within 6.6% of those in the same period in 2014.
Wright said this is due to a continuing steady balance of supply and demand throughout Q3 2015, even though the market traditionally slows during the summer before the September plate change. The largest physical fluctuation in prices during Q3 was in the four to six-year-old bracket, with residual values decreasing just 5% (£270) from £4,640 in July to £4,405 in August, stabilising at £4,405 in September.
Although supply slightly outstrips demand across the board, healthy demand for used LCVs over six-years-old has seen prices in this bracket steadily increase from £2,370 in July to £2,410 in August, rising slightly to £2,465 in September. This represents a 4% increase during Q3.
Increasing supply of used LCVs into the marketplace has seen volumes remain strong in Q3 2015. Overall volumes increased 16% (4,148), from 25,292 between July and September 2014, to 29,440 during the same period in 2015.
This surge in volumes in Q3 2015, year-on-year, can be largely attributed to significant volume increases in the two to four and six years and over age brackets, since September 2014. Overall volumes increased 28% compared to September 2014, increasing from 7,991 to 10,219 in September 2015.
Wright added that buyers have increasingly turned towards older, used LCVs, as they look to take advantage of units at lower prices, yet in good condition. Furthermore, falling mileages and average ages of used LCVs are making older LCVs a more attractive proposition. Between July and September, average mileages decreased 2,697 miles, from 80,615 to 77,918.
“The end of Q3 has seen overall volumes of used LCVs rise significantly in the three month period between July and September, yet prices continue to remain at their ceiling. Notwithstanding the typical December dip, we expect the market will remain healthy throughout the remainder of the year, while any drop in prices will be slow and gradual,” added Wright.
