February LCV values reach record levels

Average values for commercial vehicles reached record levels for the third consecutive month according to BCA’s latest figures.

Demand for LCVs was strong throughout the month, and fleet and lease LCV values rose to the second highest point on record.

Average values for all light commercial vehicles increased in February 2014 to £5,345 – a rise of £23 compared to January - as buyer demand continued at exceptional levels, according to the remarketing company.

February’s average value was the highest since Pulse began reporting in 2005 and was the seventh month in a row that average values across all light commercial vehicles exceeded £5,000.

BCA’s general manager, commercial vehicles, Duncan Ward, said: "As BCA has been reporting for many months, demand remains high for used light commercials, reflecting the improving economic messages from a variety of sources.

"Many small and medium-sized enterprises (SMEs) in the UK are now upbeat about their growth prospects this year and this sector is a big buyer of used light commercials. In fact, demand remains strong across the board, from car sized vans through to large panel vans and there is plenty of competition for any van presented in ready-to-retail condition."

"This time of the year also typically sees an uplift in the building and construction industries. As a lot of building activity was curtailed due to the wettest winter on record, we expect to see even more interest in tippers and drop sides as the weather improves in the weeks ahead.

"Online buyers continue to figure strongly, accounting for some 26% of purchases during February. This reflects the fact that good quality stock remains at a premium and professional buyers are quite literally casting the net further to secure LCVs for their retail forecourts. BCA’s video appraisals with BCA Assured reports on mechanical condition carried out by the AA are helping to create additional confidence for remote buyers.”

Fleet and lease operators saw values improve sharply in February, rising by £356 (5.5%) to £6,810 compared with January – the second highest average monthly value on record.  Year-on-year, values were up by £987 (16.9%), underlining the ongoing growth in average values in the light commercial sector.  Performance against CAP improved marginally to 102.09%, while retained value against Manufacturer Recommended Price (MRP) improved to 38.55% - up nearly two points compared to January.

Following two record months in the dealer part-exchange sector, February values fell back to £3,625 – a fall of £127 (3.3%) compared to January – but still the third highest on record. CAP comparisons improved by half a point compared to January, rising to 103.90%, and continue to outperform the fleet and lease sector. Year-on-year values remain ahead by £530 or 17.1%, with average age increasing marginally and mileage declining compared to a year ago. 

Nearly-new LCV values reached a new highpoint of £14,799 in February, with CAP performance improving to 99.47% - up 1.5 points over the month. This has to be taken in the context of the very low volumes reaching the market and the model mix factor. 

Year-on-year values remain well ahead, up by £556 (11.6%) over the twelve month period. Compared to a year ago, age has risen by over two months to 60 months, while mileage has increased by around 2,500 miles on average over the same period. Average CAP performance declined by half a point compared to February 2013.