Used LCV values rise in February, finds BCA

Fleet and lease values improved in the month, as did values in the low volume nearly new sector, although part-exchange values declined. 

 Year-on-year table: All vans

Average values were up by £187 (3.5%) compared to February 2014, although BCA found that performance against CAP across the board was down by two points over the year. Age and mileage continue to decline, with the average van being over a month younger and nearly 4,000 miles less travelled when sold in 2015.

BCA’s head of commercial vehicles, Duncan Ward, commented: “Although average values rose in February, similar conditions prevailed to the previous month, where rising volumes of poor condition or similar model vans were a significant factor.

“Corporate volumes took a slightly larger share of the market in February, although issues over quality and presentation remain as vehicles from corporate sources are returning at generally higher ages and mileages than we were seeing a year ago.”

He added: “Notably, the average price performance for both fleet/lease and dealer part-exchange vans was lower than a year ago, a result of the generally poorer condition and higher age and mileage profiles reaching the marketplace.  We have been predicting a tipping point in used values for some time and possibly we are starting to see a levelling off following many, many months of average value growth. 

“From the van dealer’s perspective, now is a great time to appraise any over age stock and get it sold, rather than chasing the market in a few weeks’ time if values soften.”

Values for fleet and lease LCVs averaged £6,533 in February – a rise of £55 (0.8%) compared to January’s figure. CAP performance averaged 100.06% and retained value against Manufacturer Recommended Price fell by over two points to 36.06%.Year-on-year, values were up by just £24 (0.3%) with age and mileage higher than in 2014. 

Year-on-year table: Fleet & lease vans 

Part-exchange LCV values declined for the second month running, falling by £154 or 4.1%.   CAP average comparisons were down by over a point at 103.83%, but continue to outperform the fleet & lease sector.    Year-on-year values were behind for the second month running by £103 or 2.8%, with the average van being five months older and having a slightly lower mileage.  CAP performance was static, year-on-year.

Year-on-year table: Part-Ex vans

Nearly-new LCV values averaged £13,592 in February – a rise of £84 compared to January, with CAP comparisons falling by half a point to 97.1%.  As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.