The company’s latest Pulse figures show that values slipped again in June as buyers remain cautious.
Duncan Ward, BCA's UK business development manager for commercial vehicles, said: “There continues to be price pressure in the used van market as average values continue to fall across the board.”
The average value across all sectors dropped to £3,499 in June, a fall of nearly £200 on May’s figure and the biggest monthly drop BCA has seen this year. Average values have fallen by more than £350 compared to those recorded in January 2008.
According to BCA’s Pulse report, fleet and lease vans averaged £3,827 in June - the second month running that values have failed to break the £4,000 watershed. This represented a fall of £152 against May’s values, equivalent to a 3.8% drop. This follows a drop of £147, equivalent to 3.5%, between April and May.
Values for part-exchange stock rose marginally by just £10 in June to £2,074, following a fall of nearly £200 the previous month that was equivalent to a decline of 8.3%.
In the nearly-new sector average values fell significantly to £9,052, a drop of £1,056 against May figures. Values are now some £2,000 behind those recorded in January 2008, although changing model mix at BCA will have contributed to these figures.
Ward said: “The market has now been slowing for most of the year, a situation we have not encountered in the LCV market for some considerable time.
“Buyers are still about in the same numbers, but buying patterns are patchy with a definite two-tier market developing of saleable, good quality stock that is sensibly valued, and difficult to place, poorer quality vans that appear over-valued in comparison.”
Ward said well-presented ready-to-retail vans were making exceptional values as buyers are paying “strong money” to secure them: “Even so, unless buyers already have a home for the van, there may be some hesitance in bidding much above the £7,000 mark.
“Away from the very best of the premium stock it is very much a buyer’s market, with sellers having to look at price to stimulate demand when there is a wealth of choice of similarly specified or condition vans.”
One bright spot according to Ward are LPG vans: “With fuel prices at record levels we have seen a resurgence in values of dual-fuel vehicles (petrol/LPG). Values on the few available have been firming – particularly in the south and Home Counties – but it’s fair to say there has been a step-change in demand in recent months.”