MODEL mix helped average LCV values rally marginally in December from November’s low point, says BCA.
Wintry conditions boosted sales of higher value 4×4 models, and changing model mix was largely responsible for the increase.
However volumes of lower value part-exchange vans fell, while nearly-new volumes actually increased ‘but remain very marginal in the bigger picture,’ says BCA
Online selling channels grew in importance as buyers struggled to attend sales and BCA saw internet sales volumes via Live Online, Bid Now and Buy Now increase sharply.
Despite average values climbing by just £37 (0.9 per cent) to £4,067 in December, values actually fell in the three main sub-sectors (fleet/lease, part-exchange and nearly-new), while overall performance against CAP declined by nearly a point.
Fleet values fell by 2.9 per cent, P/X values were broadly flat, and year-on-year figures were behind by £119, equivalent to -2.5 per cent – the first time year-on-year figures have been behind since June 2009. However compared to two years ago, figures are ahead by £1,453 or 48 per cent.
Duncan Ward BCA’s general manager – commercial vehicles said: ‘Market conditions were tough at the end of the year, with a combination of poor stock mix and inclement weather resulting in some price pressure across the board.
‘January generally brings an uplift in activity, and this is typically sustained until the Easter period – which usually represents a watershed in demand. However, the late Winter and early Spring months could see some significant increases in available volumes, which means average values could come under pressure again.’
Ward added: ‘The economy is best described as fragile and we will be seeing the early effects of the VAT increase alongside continuing rising fuel costs, which means most small businesses will have a little less flexibility in their budgets than last year.
‘Anyone looking to the SME sector to generate any major peaks in used van demand in the short term is likely to be disappointed – particularly as volumes are likely to increase over the coming month.’