The firm's new Commercial Pulse report shows that LCV values in the fleet & lease sector rose 7.1% (£320) to £4,785 last month.

Although year-on-year values are behind by over £200, BCA says that this should be seen in the context of a market that was reaching its peak a year ago. Fleet vans averaged 99.01% of CAP in January; a rise of nearly three points over the December figure.

The average value of an LCV sold at BCA in January rose by £155, equivalent to a 3.8% increase over December and the highest average value recorded since June 2010. Performance against CAP climbed three points to 99.46%.

Duncan Ward, BCA’s general manager – commercial vehicles, commented: 'Demand improved significantly in January following a tough end to the year, although there are still some issues relating to poor stock mix affecting the market. After the general shortage of LCVs seen throughout 2010, the market has seen a large influx of vans from business failures and liquidations, many in poor condition or with a low specification.'

He added: 'We usually see an upturn in interest and demand in the first three months in any year, but concerns remain that the increase in volume will have a dampening effect on the overall market. Conversions and prices have improved, but perhaps not to the level they might have done.

'Buyers have remained consistently upbeat and willing to bid on almost everything, while only pushing the barriers on the exceptionally clean, rare or low-mileage vehicles.'

And Mr Ward concluded: 'As predicted the VAT increase has had little or no effect on the B2B marketplace. However, LCVs offered without VAT are clearly even more attractive to private buyers and trade buyers hoping to retail to a non-vat registered customer.'