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Used LCV values reach record level

The Pulse report for August shows overall values rose above £6,000 for the first time on record in August, following a strong month for sales. The average van sold at BCA in August realised £6,089, a rise of £158 (2.6%) compared to July and up by £582 (10.5%), year-on-year. 

The fleet and lease sector saw average values rise by just £1 in August as values continue to stabilise in 2016.  Retained value against MRP (Manufacturer Recommended Price) fell by just over half a percentage point to 34.49%. Year-on-year, values were up by £592 (9.5%), with both average age and mileage declining over the past 12 months. 

BCA’s head of commercial vehicles, Duncan Ward, commented: “The LCV market in August was particularly strong at BCA considering the holiday season was still in full swing.  Conversion rates improved and demand was significantly stronger than we had seen in July.”

Ward added: “To put it into context, a year ago the headline average value was falling and fleet & lease vans recorded their lowest monthly value since July 2013. Since then average values have steadily improved, climbing across the board by around 10.5%.” 

However, he warned that “there is no room for complacency as volumes have risen steadily in the wholesale markets and questions remain over poor condition stock. The mantra of ‘condition, condition, condition’ remains as important as it ever was, as buyers continue to focus on well presented, good quality commercial vehicles that can be ready for retail almost immediately. It is vital for sellers to prepare their vehicles well and appraise and value them in line with market sentiment as poorer presented vans must look good value for money if they are to compete.”

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Written by Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.

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