Growing volumes and slowing demand impact on LCV values
The firm's latest LCV Pulse data shows that fleet values fell by 5.7% from £4,882 to £4,602 last month, with two and a half points coming off the CAP comparison, which sat at 97.09%.
This is the lowest monthly average value recorded in the fleet & lease sector since December 2009. However, BCA highlights that year-on-year figures remain ahead by £258, equivalent to 6.6% – compared to two years ago, figures are ahead by £1,514 or 49%.
BCA says that the rise in stock levels played a major role in the decline in values, with sold numbers up by 10.7% in November. It added that the majority of the additional vehicles came to the market well ahead of their planned defleet dates due to economic and business pressures on the operators and these additional units topped up the increasing volumes from the corporate and leasing sector.
Duncan Ward BCA's general manager – commercial vehicles, commented: 'Following months of short supply in the market we are suddenly faced with an abundance of stock, just at a time when demand is easing ahead of the Christmas break.'
'In addition we had some disruption with the snow and attendant travel chaos late in the month. While BCA did not miss a sale and the availability of Live Online internet bidding helped buyers who simply could not travel, the markets are not immune to the severe weather. There is little doubt that retail businesses were affected in the short term and that impacted on the wholesale markets in turn.'