Used LCV values fall back in April as volumes rise

Average used LCV values fell back in April - for the first time since late last year - declining by 2.9% compared to March, according to BCA.

Despite this, April’s average value of £5,395 for commercial vehicles was the second highest on record since BCA Pulse began reporting in 2005.

The remarketing firm reported that every sector saw a fall in value as fleet & lease LCV values declined by £314 (4.4%), P/X van values fell by £162 (4.3%) and nearly-new vans posted a fall of £2,152 (14.1%) - although this latter figure will have been as a result of changing model mix in a very low volume sector.

Values for all light commercial vehicles decreased to £5,395 in April – a fall of £162 (2.9%) compared to March’s average value (which was the highest since Pulse began reporting in 2005). Volumes rose during April with a greater percentage of Fleet & Lease stock sold, resulting in a richer mix of vehicles in the marketplace.

Year-on-year values remain ahead, up by £397 (7.9%) over the twelve month period. Compared to a year ago, age is static at 58 months, while mileage has increased by around 3,000 miles on average over the same period. Average CAP performance improved by half a point compared to April 2013.

All vans	Avg Age (mnths)	Avg Mileage	Avg Value	Sale vs CAP
Apr 2013	58.78	76,999	£4,998	101.38%
Apr 2014	58.52	80,187	£5,395	100.90%

BCA’s general manager (commercial vehicles), Duncan Ward, said: "Although April’s values were the second best on record and are significantly higher than the same period last year, the market slowed over the extended Easter and May Bank Holiday period and sale conversion rates have fallen back. Volumes have risen quite noticeably, meaning there is more choice for buyers and this has impacted on average values.”

He added: “There are signs that sellers are being more pragmatic about values, as performance against CAP declined noticeably compared to March. Dealer part-exchange vehicles saw performance fall around four points down to 102.0%, with corporate vehicles falling by two points to 100.5%.”

Nearly-new LCV values declined sharply after two consecutive months of record values. Values fell by £2,152 (14.1%) to £13,033 in April with CAP comparisons down four points to 97.47%. BCA warns that this has to be taken in the context of the very low volumes reaching the market and the model mix factor.