February fleet & lease values remain strong despite rising volumes
New BCA Pulse data for February shows that fleet & lease LCV values fell back by £186 (3.8%) to £4,599, effectively losing half the gains made in January when values climbed sharply. However, BCA adds that when taken in the context of a market that saw sold volumes increase by some 18%, it is apparent that there is plenty of demand for stock.
As with last month, year-on-year values are adrift (by £527 or 10.3%) as the market was reaching its peak a year ago. Fleet vans averaged 98.15% of CAP in February, nearly a point behind the January average.
Overall average values fell by £76 (1.8%) in February while sold volumes increased by nearly 13% over the same period, following a near 50% increase between December and January.
However, Duncan Ward, BCA’s general manager – commercial vehicles, warned that defleet volumes should ramp up in coming months, with possibly some more price pressure in the fleet/lease used van sector.
Mr Ward added: 'The overall economic picture remains fairly depressed, and small business confidence is reported as low. A recent survey found that nearly three-quarters of small businesses are unlikely to add to their workforce this year, while even more are concerned about access to bank lending to fund growth.'
He concluded: 'High fuel prices are contributing to the rising inflation, as well as the knock-on effect of rising costs across all areas of business. It means small businesses and solus traders are likely to be looking to reduce their costs going forward – considering these sectors are the biggest buyers of used vans this could have a significant impact on demand as the year rolls on.'