8:10 am, August 13, 2013
THE average values of LCVs climbed in July, but only by £6 compared to June values, according to BCA’s latest Pulse report.
LCVs saw a small rise in value, representing an average July figure of £4,772. Average age remained around 58 months while average mileage also increased for the third month running.
The increase in values was, however, enough to reverse the trend of price falls recorded over the previous two months.
Meanwhile, fleet and lease values fell by £171 in July to £5,782 recording a fall of 3.1 per cent compared to June, but year-on-year values remained ahead, up by £753. Dealer part-exchange sectors saw values recover sharply to reach the third highest monthly value on record.
BCA says that demand from professional buyers remains relatively strong despite the market entering one of the traditionally slower times of the yea. However, it recommends vendors should be valuing stock realistically as volumes will rise in the coming weeks.
BCA’s general manager, commercial vehicles, Duncan Ward, said: ‘The summer holiday period is typically a weaker time for demand but values have been maintained at a similar level to last month largely as a result of the low levels of supply.
‘Trade buyers are continuing to focus on the very best retail vehicles which are routinely making exceptional money, while vans in poor condition may struggle for attention.’
He added: ‘Sellers should consider adjusting valuations now on poorer condition vans with a view to remarketing them before volumes begin to rise and buyers have more choice from mid-September onwards.
‘Vans entered from dealer part-exchange sources have outperformed the market in recent weeks, and values rose sharply during July. Dealers are valuing their part-exchange vans realistically to tempt buyers in and have reaped the rewards of rising average values, a CAP percentage that is ahead of the wider market performance and good sale conversions as a result.’
