Average values for LCV’s at BCA slipped by £65 in September, largely as a result of a changing model mix that saw volumes of cheaper P/X vehicles increase by 25% over the month.
The overall fall came despite a very competitive marketplace that saw increased demand outstripping available supply and high levels of trading activity throughout the month.
Overall average values fell by 1.5% from £4,211 in August, to £4,146 in September. Performance against CAP improved, however, to just under 100%.
Fleet values increased by £74 (1.75%) to £4,831, with P/X values improving by a more modest £22 to £2,376 – a rise of just under 1%. In contrast, there was some price pressure in the nearly-new market with average values falling by £80 or just over half a percent – volumes are very small in this sector and model mix will have played a role.
Duncan Ward BCA’s general manager - commercial vehicles commented, “As expected, professional buyers remained very active in September and competition for the best, ready-to-retail stock has been high.”
“Supplies of direct entered fleet and lease vans remain constrained, due to longer retention periods and extended contract cycles, although the short fall was largely plugged by increased volumes from P/X sources – the latter suggesting retail business has been adequate during September. While a decent combination of condition, colour and specification is usually enough to stimulate interest even at a higher mileage, obvious damage is a big turn off.”
Ward added “Condition remains a major concern, particularly where vehicles are remaining in service longer. Vendors should appraise stock sensibly when setting reserves to avoid delay in the remarketing cycle. We see the results every day in the auction hall where otherwise similar vehicles achieve final values often hundreds of pounds apart because of cosmetic damage that could have easily and economically been repaired.”
“The condition issue applies across vehicle types, but has the biggest effect in the higher volume sectors. Where buyers have the choice of better-prepared LCVs they will naturally gravitate towards them and bidding is substantially stronger on those vehicles. Exceptions will be made for rare and high-demand configurations such as double-cab tippers, executive minibuses, Lutons and very low mileage panel vans providing the damage can be easily repaired without a visit to the bodyshop.”
Year-on-year values remain ahead by £284 or 7.3% in September and average monthly values remain well ahead of the £4,000 ‘price barrier’ that was breached for the first time in December 2009.