Average LCV values in November slipped to their lowest point this year, as weakening demand combined with increasing volumes to affect resale values in the wholesale market. The wintry conditions exacerbated the situation by reducing demand at retail dealer level, which, in turn, impacted in the remarketing arena.
Average wholesale LCV values fell by £149 to £4,030 in November, from the £4,179 recorded in October. Sold volumes increased by around 10.25%, after recording a 9.0% fall in October.
Most of the additional volume came from the corporate fleet sector, where sold numbers increased by 10.7%, although part-exchange sold numbers also increased by 7.2% during the month. Nearly-new LCV’s remain exceptionally scarce, although numbers did rise in November from a very low base.
The majority of the additional vehicles came to the market well ahead of their planned de-fleet dates due to economic and business pressures on the operators and these additional units topped up the increasing volumes from the corporate and leasing sector.
Alongside the supply increase, demand eased slightly as is typical in a November market and this combination resulted in price pressure in the fleet and P/X sectors, although nearly-new vans actually posted a value increase over the month. With average values faltering, average performance against CAP also declined to 97%, from just under 100% the previous month.
Duncan Ward BCA’s general manager – Commercial Vehicles commented, “Following months of short supply in the market we are suddenly faced with an abundance of stock, just at a time when demand is easing ahead of the Christmas break.”
“In addition we had some disruption with the snow and attendant travel chaos late in the month. While BCA did not miss a sale and the availability of Live Online internet bidding helped buyers who simply could not travel, the markets are not immune to the severe weather. There is little doubt that retail businesses were affected in the short term and that impacted on the wholesale markets in turn.”
Fleet values fell by 5.7% from £4,882 to £4,602, with two and a half points coming off the CAP comparison, which sat at 97.09%. It is the lowest monthly average value recorded in the fleet & lease sector since December 2009. Even so, year-on-year figures remain ahead by £258, equivalent to 6.6% - compared to two years ago.