BCA’s latest reports show the headline value for used LCVs came under pressure in June, in-line with usual seasonal challenges that impact buyer demand.
The headline value fell by £240 (3.2%) to £7,157, with values falling for corporate entered fleet & lease LCVs, dealer entered stock and nearly-new vehicles. Year-on-year, average values fell by 4.1%, with the average age rise of 6.4% contributing to the decline.
Stuart Pearson, BCA COO, UK remarketing commented “BCA saw some price pressure across all sectors in June, which although not unusual for the time of year is also heavily affected by the mix of product of offer. Retail sales of LCVs often slow in the period between the May Bank holidays and the start of the summer vacation period and that naturally transfers to activity in the wholesale sector.”
He added “Typically when demand softens we see the onset of a two-tier market, where the best prepared and presented retail-ready LCVs continue to attract competitive bidding, while vehicles offered with damage or are poorly prepared need to be sensibly valued to sell first time. Digital buyers particularly focus on the better quality stock and, as these buyers represent over half of all vans being purchased at BCA, it underlines the importance of preparation. Those sellers that use BCA Valuations insight to price accurately and in line with market expectations continue to attract the best following from professional buyers.”
Fleet and lease LCVs averaged £7,908 at BCA in June 2019, a fall of £284 (3.5%) compared to the May figure. Year-on-year values were down by £272 (3.3%) as average age and mileage continued to rise. Sales performance against Manufacturer Recommended Price fell by nearly 1% during the month, and was down by 2.6% year-on-year.
Part-exchange LCV values averaged £4,405 at BCA during June 2019, the lowest value recorded since August of last year. Year-on-year values also lagged behind, falling by £303 in June, having risen by a similar amount in May. Average age remains stable, with mileage down by around 1,000 miles compared to a year ago.
Nearly-new LCV values averaged £14,286 at BCA in June 2019, continuing a steady fall in average monthly values from the high-point recorded in February. As always, these values have to be taken in the context of the volumes reaching the market, the model mix factor and availability of stock.