According to Alex Wright, managing director of Shoreham Vehicle Auctions, prices throughout 2015 have remained consistent, with final prices in December of £4,803 fluctuating by just £20 from year start to year-end. In January 2015, prices were at an average of £4,783, just 0.4% lower than December 2015’s average of £4,803. Average used prices in December 2015 fluctuated just 5.7% (£288) compared with December 2014 figures.
When compared with average monthly prices in 2014, prices fluctuated a maximum of just 6.6% throughout 2015. In Q4, November prices fluctuated 0.5% compared to the same period in 2014, the joint lowest percentile change, year-on-year, of 2015.
Despite Q4 traditionally being a slower quarter as buyer demand falls approaching Christmas, strong demand kept prices buoyant as increased volumes entered the used market towards the end of 2015. Aside from used LCVs under two-years-old, the largest physical fluctuation in Q4 prices was in the six-year-old category, with residual values decreasing 9% (£240) from £2,640 in October to £2,555 in November, falling a further 6% (£155) to £2,400 in December.
Wright added that this was in line with an influx of older vehicles into the market, which were typically less desirable with higher mileages. This, along with the average age of used LCVs over six-years-old increasing from 105 months to 111 months throughout 2015, led to a 5.7% reduction in first time conversion rates.
Although volumes in every sector fell in Q4 approaching Christmas, overall demand has remained extremely strong throughout 2015, with volumes rising in every sector in December 2015 compared to December 2014, helping overall volumes increase 35% (1,605 units) in this period.
This was largely due to significant increases in volumes of used LCVs over four-years-old. Volumes of used LCVs between four and six-years-old increased a massive 65% (823 units) from 1,260 in December 2014 to 2,083 in December 2015. Volumes of the eldest units increased 35% (540 units) from 1,576 to 2,116 in the same timeframe.
“Although registrations of new LCVs surpassed pre-recession levels for the first time, buyers remain confident in sourcing the right stock in good condition in the auction halls. The strength of the economy has helped keep demand healthy in December, despite vendors trying to clear older stock, enabling fluctuations in prices to be minimised,” added Alex Wright.
