Average used LCV values fell by 1.2% in August at three years / 60,000 miles, new Cap HPI data reveals.
The automotive data company said demand for city and small vans, which was particularly strong earlier in the year, had weakened considerably over the past three months.
Medium and large van market prices have reached a sustainable level, with only the older large van model prices continuing to weaken. Minibus prices have also stabilised, while demand for 4×4 pickups remains “remarkably strong”, particularly for lifestyle/SUV models.
Despite the downturn in sales of new LCVs during the height of the pandemic, Cap says there are no immediate concerns over the supply of used stock.
Ken Brown, LCV valuations editor, added: “While there is plenty of stock to go around, it is worth noting that vehicles entering the used market are generally older, they’ve covered higher mileages and are exhibiting correspondingly more damage. These are issues that are likely to persist for a long while, at least until new vehicle supply and fleet vehicle replacement cycles are back on track.
“Trade buyers have become accustomed to this, which is reflected in the prices they are prepared to pay. They have had to adapt regarding their evaluation of vehicle condition and residual value aspirations. Consequently, we continue to see market prices fall, with some sectors faring better than others.”
Brown also warned that values for BEV LCVs remain under pressure – dropping by 4% for city vans and 14.8% for large vans in August as trade buyers focused on easier-to-sell diesel models.
Cap said that inadequate charging infrastructure, range anxiety, high vehicle purchase prices, and the rising cost of electricity are all playing their part in relatively low retail demand.
Brown continued: “It is no surprise that dealers prefer to invest in stock they can turn over quickly. Faced with the prospect of having their money tied up for longer periods in more expensive BEVs, trade buyers are voting with their feet, putting extreme pressure on market prices.”
