So says Shoreham Vehicle Auctions, which is predicting that the market will stay stable through the rest of the year.
Overall year-on-year residual values have stabilised at £4,599 whilst average year-on-year prices have fluctuated just 6.6% throughout the year so far, compared with prices in the same period in 2014. This compares favourably with the last three years, where average prices have fluctuated by up to a fifth year-on-year.
Although used prices in 2015 have remained stable, average year-on-year prices have decreased for five consecutive months for the first time since 2012.
Meanwhile, falling demand for LCVs under two-years-old has affected month-on-month prices in this bracket throughout 2015, with residual values falling 3%, (£340) from £11,475 to £11,135, the largest physical fall in prices between January and May. Other prices have remained stable, with a £65 increase from £6,605 to £6,670 in the two to four-year age bracket representing the next largest physical fluctuation between January and May.
A fine balance of supply and demand of used LCVs is supporting this price stability across the market, as both increase and decrease in tandem, helping to increase overall volumes.
Increasing supply has seen overall volumes increase from 44,580 to 51,165, between January and May 2015, compared to the same period in 2014. This can be attributed to record volumes of used LCVs in the two to four-year-old bracket and with those over six-years-old, throughout 2015.
Volumes of used LCVs between two and six-years-old is being met by strong demand from buyers, as they look to take advantage of older, used LCVs in good condition at stable – and lower – prices. This strong and steady balance of supply and demand will continue throughout 2015, helping to keep prices at a consistent level, while driving volumes upwards.
“The used LCV market is in unprecedented territory, with strong supply levels helping to keep volumes high, while prices continue to remain at a high ceiling,” says Alex Wright, managing director of Shoreham Vehicle Auctions.
“We are confident that prices will not increase any further, resulting in a strong and buoyant market for the remainder of the year, with continuing price stability inspiring confidence in SMEs that are looking to balance quality and affordability,” he added.
