Used commercial vehicle sector sees strong Q2

Average values for commercial vehicles continue to rise, as Q2 2014 posted the highest headline figure on record according to BCA’s latest figures.

LCVs averaged £5,460 at BCA over Quarter 2 2014, up by £583 (11.9%) over the twelve month period. Average age has fallen marginally over the year, while mileage has increased by around 450 miles on average over the same period. Average CAP performance was down marginally compared to 12 months ago.

Longer-term value growth in the used LCV sector can be seen when comparing 2014 to 2012. Average values have risen by £1,181 (27.5%) over the 24 month period as the shortage of good quality stock continues and demand increases as economic conditions improve.

BCA’s general manager – commercial vehicles, Duncan Ward commented: ‘There can be little doubt that the improving economic background is giving a boost to the used LCV market, and small and medium-sized enterprises (SMEs) remain positive about future prospects. News of massive infrastructure projects such as HS2 which will generate thousands of construction jobs, as well as numerous A-road improvement schemes and house building projects will do much to improve confidence in small businesses serving the civil engineering and construction industries. The building and associated trades are some the biggest buyers of used LCVs, so we should expect demand to remain relatively strong in the months ahead.

‘Additionally, the continued growth in online shopping and home delivery services has created another layer of demand for used panel vans, which is keeping values firm.”

‘The market was generally strong across the second quarter of 2014 with record average monthly values being set across the board in May. However, volumes rose noticeably over the period, offering more choice for buyers and introducing some pressure on conversion rates, particularly in April.

‘Competition remains very strong for retail quality used stock, and values for these best quality vans remain exceptionally strong, typically outperforming guide expectations by some considerable margin. Buyers particularly like any vehicle with a good useable specification or specialist equipment and there is always demand for Lutons, dropsides and tippers.

‘However, vendors should also be aware that vehicles presented for sale with damage, in poor colours or with excessive mileage need to be realistically valued if they are to sell first time.’

Average values for fleet & lease vans rose by £662, year-on-year, equivalent to a 11.0% uplift. Average mileage increased, with average age at time of sale decreasing. Over the 24 month period, fleet & lease LCVs have risen in value on average by £1,616, or 31.8%.