Pressure on values is due to 'typical seasonality', says BCA
LCV values averaged £4,112 across the board in July, a fall of £168 (3.9%) against June’s values, with nearly-new, fleet & lease and part-exchange values all decreasing. The fall is on a par with that seen in June, when values decreased by £186 or 4.1%, although the market dynamics have changed over the past few weeks.
Average fleet/lease values fell by £79 (1.6%) to £4,830, just half the fall seen in the previous month of June (when values decreased by £164 or 3.2%). Values have now fallen for three months in a row, following a run of six consecutive "record months". However, BCA noted that average fleet/lease values for July were nearly £1,000 higher than they were in July 2009 and nearly £1,200 ahead of the same month two years ago. Values are over £1,800 ahead when compared to the bottom of the market in December 2008.
CAP figures for used LCVs were relatively stable over the month, recording a small increase (a quarter of a point) over June and including a rise for fleet vans.
BCA said that the current fall in values should be judged as typical seasonality, adding that this factor has only been seen returning in recent weeks.
Duncan Ward, BCA’s general manager commercial vehicles, commented: 'We reported that seasonality was having a bigger effect on market dynamics in recent weeks. The summer months are traditionally quiet in terms of wholesale churn and this impacts directly on price.'
He added: 'While demand is softer than we have seen for some time, we expect September and October values to rally alongside increased levels of business. The long-term prognosis is for an increase in demand as the economic situation hopefully improves. The smaller numbers of new vans going "on fleet" over the past 30 months or so means the marketplace may well experience a shortage of certain ages and types of product. This will inevitably lead to rising prices in an improving marketplace.'