BCA Pulse: Commercial values fall in accordance with seasonal pressures
Despite the fall, price performance remained on a par with much of 2012, with average values at near record levels in the fleet/lease sector, while the low volume nearly-new sector recorded the highest monthly value since Pulse began reporting in 2005. Performance against CAP average fell over the month by a point to just under 100%.
Year-on-year, November 2012 was behind by £54 or 1.2%, with both average age and average mileage increasing over the period.
Duncan Ward BCA’s general manager – Commercial Vehicles commented: ‘It was not unexpected to see values falling from the near record levels achieved in October. The market place is entering a slower phase in the run-up to the year-end and demand faltered a little in November – a seasonal element to the annual buying cycle.’
‘Typically when the market eases, buyers leave the poorest condition vehicles behind but with the shortage of stock in the marketplace, sale volumes held up well in November and were on a par with October’s figures.
‘Values for corporate stock declined a little from last month’s record values, but generally ex-fleet and lease stock is being snapped up by buyers. That said, vendors with large volumes of vans of a similar make, model, specification and colour should review their remarketing activity as the year draws to a close to ensure vehicles are sensibly priced in the current climate,’ he added.
‘Overall, prices remain strong when taking the longer view and average values during 2012 have probably exceeded the expectations of most market watchers when placed in the context of the relatively weak economy and low business confidence,’ he concluded.
While monthly values in the fleet & lease LCV sector fell by £88 (1.7%) to £5,113 in November, it was the joint second highest average monthly value on record (with May 2012) for corporate LCV stock. Performance against CAP fell by nearly two points to 99.6%. Retained value against Manufacturer Recommended Price fell slightly to 31.9%, with average age and mileage virtually static. November 2012 was £60 (1.2%) ahead of the same month last year – with average age and mileage rising.
November part-exchange values remained at near record levels, despite falling by £60 (2.0%) over the month to £2,910. CAP comparisons fell by three points to 99.7% and continue to outperform the fleet & lease sector. Year-on-year values remain well ahead by £184 or 6.7%, with age and mileage rising in 2012.
Nearly-new values improved for the third month running to reach £14,474, achieving the highest value on record. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor. CAP performance improved by three and a half points to 105.9%.