Fleet LCV Values climb in July
Figures for July show that average values fell to £4,130 from the £4,140 recorded in June. It was the second consecutive monthly fall recorded, although values remain well above the April low point.
Typical seasonal price pressures affected dealer part-exchange and nearly-new values, although fleet & lease values actually rose during the month. With limited stock reaching the market volumes fell compared to June, with sold numbers decreasing in both the larger volume sectors of fleet & lease and dealer part-exchange.
While values fell marginally compared to June, CAP performance actually improved by a further two points to over 100%. Year-on-year values are virtually flat, with just £18 separating this year from last year – although it is notable that July represents the first time that year-on-year values have been ahead in 2011.
Values improved by £70 (1.5%) in the fleet & lease LCV sector, to reach the highest point recorded since January – although values remain well behind those recorded in 2010, when the market peaked in excess of £5,000. With this in mind, year-on-year values were adrift by £147 (3%) in July – halving the deficit recorded in June.
Fleet vans averaged 101% of CAP in July, nearly a four point increase from June.
Part-exchange values were relatively flat for the second month running at £2,429 in July, falling by just £18 compared to June. CAP comparisons fell back to 98% in July from the 100.5% recorded in June.
Year-on-year values were ahead by £134 (5.8%) – the first annual improvement recorded since October of last year.
Nearly-new values fell sharply to £9,487 from £12,098. As always, this has to be taken in the context of the low volumes reaching the market and the model mix factor. CAP average performance fell by three points to 101%.
Duncan Ward BCA’s general manager of Commercial Vehicles commented, ‘While prices have stuttered in the past few weeks, the long term prognosis is for values to rise again. The summer months are traditionally very quiet in terms of demand, but with buyers recognising that stock will be in short supply for some time, this has not applied in 2011.
‘The markets are already experiencing a shortfall of 3 to 5 year old one owner used LCV stock and as demand begins to pick up even further in the autumn months, we could see prices rise sharply in the used market.
Ward added ‘We are already seeing some professional buyers moving away from their traditional age and mileage profiles, either competing for the even scarcer late plate vehicles or looking at the best presented part-exchange and privately entered vehicles coming back to market. There has also been a significant uplift in professional buyers searching further afield via BCA Live Online because their traditional sources are starting to dry up.’