Average values for used LCVs rise in December

By Fleet News

17 January 2014

The average values of used LCVs at auction across the board increased by 5.4% from £4,512 to £4.757 between November and December, according to the National Association of Motor Auctions (NAMA).

However, total sales volumes saw a sharp fall of -51.2% with a total of 3,885 units being sold.

The number of days that LCVs remained on site fell to 11.3 and conversation rates improved by 3% standing at 79%.

Price changes by age

Sep-13

Oct-13

Nov-13

Dec-13

<2 years

£11,185

£11,820

£11,175

£11,270

Previous month diff

9.6%

5.7%

-5.5%

0.9%

2 - 4 years

£6,345

£6,700

£6,830

£6,590

Previous month diff

2.8%

5.6%

1.9%

-3.5%

4.1 - 6 years

£4,080

£4,265

£4,250

£4,425

Previous month diff

2.9%

4.5%

-0.4%

4.1%

Over 6 years

£2,190

£2,420

£2,370

£2,520

Previous month diff

15.6%

10.5%

-2.1%

6.3%

2013 closed strongly with the prices being achieved for LCVs having mostly increased with an overall improvement of 5.4%.

Disappointingly, the exception to this being a 3.5% fall recorded at 2-4 years.

However, as the average mileage for LCVs in this age band grew over the month by a similar percentage, this probably goes some way to explaining the decline.

Volume changes by age

Sep-13

Oct-13

Nov-13

Dec-13

<2 years

334

508

367

200

Previous month diff

17.3%

52.1%

-27.8%

-45.5%

2 - 4 years

2,138

2,452

2,003

1,136

Previous month diff

3.6%

14.7%

-18.3%

-43.3%

4.1 - 6 years

2,759

2,884

2,609

1,215

Previous month diff

2.7%

4.5%

-9.5%

-53.4%

Over 6 years

2,698

3,266

2,984

1,334

Previous month diff

1.4%

21.1%

-8.6%

-55.3%

Across all age bands in December, the falls in volume were of similar magnitude and point toward LCV supply being restricted for some months to come.

Alex Wright, chairman of NAMA Commercial Vehicle Group said: “The LCV sector continues to be a marketplace where the outcome is being dictated by the balance between supply and demand.

“Accordingly, with supply looking likely to be limited over the first six months of 2014, the prospects for the overall sales performance remain positive although the total revenue generated will be constricted due to volumes being below what could be absorbed.

“In the final NAMA Report for 2013, the data collected from across the auction industry highlighted the strength of demand for LCVs that ensured the year closed on a high note.

“Together with reports of a strong start to the new year, this all points toward a profitable 12-months being there for the taking provided that best-practice is followed”.