Data from BCA’s monthly Pulse report shows that average values for light commercials have continued to climb in 2009. Over £400 was added to the average value in March as buyers continued to compete strongly for stock.
However, values still have yet to recover all the ground lost last year when the market peaked of £3,868 in January 2008.
Average values across all LCVs climbed in March by 13.6% to £3,544, a rise of £427 against February. Values are now £772 ahead of December’s low point, but remain £177 behind year-on-year. Average guide values improved by 3.3 points over the month to break the 100% barrier for the first time since 2007.
Much of the recovery continues to be driven by the fleet & lease sector, where average values have improved from £3,359 (97% CAP) in February, to £3,869 (100% CAP) in March. Dealers say sourcing stock is currently their biggest issue to meet the improved retail demand and increased competition is keeping values keen.
Duncan Ward BCA’s UK Business Development Manager – Commercial Vehicles commented “Following a long period in the doldrums, there is a lot more confidence in the used LCV market in 2009 and that is reflected in stronger bidding, higher conversions and improving prices. The recovery in the fleet & lease sector is significant as it is by far the biggest volume provider into the used market. CAP performance on fleet and lease stock has improved rapidly, recovering six points in January, seven points in February and three points in March.”
Steady price recovery also continued in the part-exchange sector in March, with average values rising by £50 to £1,935 – a similar increase to that experienced the previous month. CAP performance improved by over 3-points, following an 8-point increase last month and a 10-point rise in January. P/X volumes remain subdued as dealers are retailing a greater number of these vehicles, rather than trading them.
Values for nearly-new vans at auction continued to improve in March, rising by £552 to £8,991 and a new high CAP performance of 107.71%. Year-on-year, however, values are down by nearly £2,000.
Ward added “Quarter 1 demand for light vans has been exceptional and we are hopeful that this interest will be maintained well into the second quarter. This mini-boom in LCV sales is likely to be a side–effect of the tough economic climate. With increasing numbers of redundancies in manufacturing and engineering, many of these skilled trades people will strike out on their own and the first thing they will buy with their redundancy money is a van.”
In addition, Ward suggests many small businesses will have ring-fenced the troubles of 2008 and are now moving on and looking to the future. He said “With the start of the new financial year, new budgets will be in place, and many businesses will look to replace any long-in-the-tooth vehicles with newer, more efficient models. Despite the recent rises, the used market still represents excellent value for money.”
Tags: LCV Auction, Van Auction, van prices