BCA Commercial Pulse: Values recover from Bank Holiday meltdown
BCA's data shows that average values in the fleet & lease LCV sector increased by 3.3% (£150) compared to April, halting a three-month decline from the January peak. Sold volumes improved by nearly 10% in the fleet & lease LCV sector.
Year-on-year fleet values are adrift by £402 or 7.9% – with signs the differential is reducing. Fleet vans averaged 95.3% of CAP in May, a two point decline from April.
Overall, values improved by 6.2% in May and climbed to £4,218 after dipping to a 17-month low of £3,969 in April. Sold volumes also climbed – by 6.7% – but have a long way to go to fully recover from the 31% fall recorded between March and April. CAP performance actually decreased by one and half points to 96%. Year-on-year values remain behind by £248 compared to May last year – when the market was peaking in terms of value.
Duncan Ward, BCA's general manager – commercial vehicles, said: 'The mix within the fleet sector has improved as most of the vans from the business failures and liquidations in late 2010 have now washed through. However, it highlighted to sellers that vans in non-retail colours and a low specification need to be sensibly valued if they are to be remarketed successfully.'
He concluded: 'Despite continuing wider economic concerns, small businesses continue to support the used LCV sector strongly, particularly in the budget end of the market. Interest on vehicles valued in the £1,000 to £2,000 price range remains exceptionally strong, but condition is still an important factor – a clean and tidy high-mileage vehicle is arguably more saleable than a lower-mileage, younger but poorly presented example. Late-year product remains exceptionally rare and difficult to source and as a result examples are hugely coveted by professional and non-trade buyers alike.'