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BCA reveals LCV price pressure

Average values for both fleet and lease and part-exchange commercial vehicle values fell in the fourth quarter, according o BCA’s Pulse December report.

Fleet values dropped by nearly £500 over the period, while part-exchange values were over £800 down on September 2007 figures.

Monthly fleet values averaged around or above £4,000 throughout the spring, summer and early-autumn of 2007, but fell in December to around £3,550. This has coincided with greater volumes being available from fleet and lease sources for remarketing.

By December, average mileage had crept up to over 73,000 – some 4,000 miles higher than that recorded in August, for example.

Average fleet & lease LCV Values at BCA

Part-exchange vehicles traded by dealers experienced similar price pressures. Values again reached a highpoint in September 2007, but declined sharply in the following three months. Values in December were around £850 down on September figures.

There was also significant movement in terms of age, as vehicles offered in December were on average nearly a year older than September.

Average part-exchange LCV values at BCA

Duncan Ward, BCA's UK business development manager for commercial vehicles, said: "While these price falls look dramatic, they must be taken in the context of 2007 being one of the strongest light commercial markets we have seen in a long time.

"Add in the traditional seasonal slowdown to the mix and we can see that while prices have fallen, the market enjoyed an extremely busy end of the year in terms of demand, attendance, conversion and price. While there were occasional signs of slowdown as the year drew to an end and times when buyers were cherry-picking the best vehicles, overall demand held up well."

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