Steady rise for LCV values continues
Fleet values increased by £51 (1%) to £4,882, with half-a-point added to the CAP comparison to sit at 99.52%. Since values peaked in April, price performance in this sector has been very steady around the £4,200 mark.
Average wholesale LCV values improved by £33 to £4,179 in October compared to the figure of £4,146 recorded in September. Volumes, meanwhile, dropped by around 9.0% – and BCA says tht this shortage of stock is most noticeable in the corporate, volume fleet sector.
BCA added that demand remains very healthy, with trade buyers being particularly active in October. The competitive marketplace means demand is outstripping available supply, with online and hall bidders competing strongly.
However, while average values improved, performance against CAP was broadly flat, remaining just under 100%.
Duncan Ward, BCA's general manager – commercial vehicles, commented: 'There has been little change in market conditions over the past eight weeks as professional buyers remain active and competition for the best, ready-to-retail stock is high.'
'The shortage of direct entered fleet and lease vans continues, and volumes actually fell again in October, down by some 10% month-on-month. With part-exchange volumes also down on the month, buyers have had to compete even harder over the past few weeks and simple supply and demand economics have seen prices climb yet again.
'In addition, the end-user/owner-operator remains a factor – particularly in the sub-£3,000 price band – and this is likely to continue for the foreseeable future. With cuts and redundancies in the public sector we are likely to see more and more small businesses being established in the months ahead and a used van will often be one of the first things purchased.'
Year-on-year values remain ahead by £321 or 8.3% in October and average monthly values have now been over £4,000 for eleven consecutive months.