Average LCV values at BCA fell 3.5% in August as the market moved to more seasonal levels of activity.
Following two successive monthly increases, values dropped to £9,864 last month; a fall of £356 from the figure of £10,220 reported by BCA in July, but still ahead of May (£9,517) and June (£9,800).
August’s fall came as the UK recorded one of the hottest summers on record, and BCA said the shift in average values was largely a result of the change in model mix that is typical at this time of year. Performance against guide prices improved by nearly two percentage points to 97.5% over the month.
And year-on-year values were virtually level, with August this year down just £10 on 2021’s figure.
Sale conversion rates lifted during August and average weekly values steadily improved during the month, rising above £10,000 in the final week of August.
Stuart Pearson, BCA’s chief operating officer UK, said the overall picture in the LCV market suggests a settling into more familiar trading patterns as the constraints imposed by the pandemic have receded.
“Admittedly many economic pressures remain on those small businesses that typically purchase used LCVs at retail, but this is balanced by a shortage of the best-quality, forecourt ready stock in the wholesale sector.”
He added: “The ongoing demand for retail quality light commercials means there is plenty of competition for the best examples reaching the market, exacerbated in August as volumes of corporate stock tend to be lower. The few late-plate light commercials on offer can make exceptional values and, as always, the best graded vans with a good specification and in an attractive retail colour remain very desirable.”
Pearson also reiterated that sellers should work closely with their remarketing partner to ensure that vehicles are realistically valued, properly prepared and graded, and accurately catalogued to attract the right buyers.
Looking ahead, BCA also pointed out that the new LCV market continues to face substantial challenges, with new sales falling by nearly 25% in August as the sector faces ongoing supply chain issues and long delivery times.
“The wholesale used sector remains the best source of stock for professional buyers and this is likely to continue for the foreseeable future,” Pearson emphasised.
