Fleet News

LCV values rise again in April

Light commercial vehicle values rose for the third consecutive month to reach a new highpoint in April according to BCA’s latest Pulse report.

The average April figure of £4,998 for all LCVs was the highest on record for any month since Pulse began reporting in 2005.

Values rose by £138 (2.8%) compared to March. Average age was static at just under 59 months, although average mileage fell back by nearly 4,000 miles over the month.

The fleet and lease and dealer part-exchange sectors established new record values for LCVs as the shortage of supply continued.

BCA's Duncan Ward said: "April has continued the pattern seen over recent months with demand virtually across the board from smaller car-sized vans up to large long-wheel base panel vans.

"Condition and presentation remain important, and high mileage may discourage some bidders, but overall average values and conversion rates remain very strong.

"The auction halls have been very busy across the BCA network, while the number of buyers participating via BCA Live Online continues to rise.

"In the current market, the limited supply and levels of demand in the remarketing sector have seen prices rise for corporate stock and older dealer part-exchange vans.

"Anecdotal evidence from a number of sources suggests retail used van activity remains slow, yet the wholesale remarketing sector is relatively strong. LCV values have been universally strong throughout the first third of this year and are significantly higher than the same period last year."

Values in the fleet and lease LCV sector improved again in April, rising by £264 (4.4%) to £6,171 - the first time average monthly values for corporate LCVs have been above £6,000. Values have risen every month bar one since last August.

Performance against CAP fell back by nearly two points to 100.9%, while retained value against manufacturer recommended price improved to 37.17% from 35.43% in March.

Year-on-year, the value evolution for corporate stock remains significant - April 2013 was £1,063 (20.8%) ahead of the same month in 2012 – with average age and mileage down over the year.

April part-exchange van values were also the highest since Pulse began reporting in 2005, increasing by £114 (3.4%) compared to March.

CAP comparisons at 102.7% continue to outperform the fleet & lease sector, while year-on-year values remain well ahead by £634 or 22.9%, with average age and mileage relatively static compared to a year ago.

Nearly-new values fell back in April to £11,286 with CAP performance declining by a point to 98.21%. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor


Click here for remarketing best practice and procurement insight

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee