Average light commercial vehicle (LCV) values increased by 1.8% to £5,607 in September month-on-month, reversing a two month decline, according to the latest BCA Commercial Pulse report.
Despite rising volumes of stock continuing to reach the wholesale markets, BCA said increased levels of demand and competitive bidding saw values rise for fleet/lease, dealer part-exchange and nearly-new vans.
Fleet and lease values increased by £228, dealer part exchange stock rose by £32 to the highest point seen this year and the average value of nearly-new stock rose by £707, largely as a result of changing mix in a low volume sector.
Year-on-year values were ahead by £47 (0.8%), with the average van in 2015 being slightly younger but noticeably lower mileage, down by 5,000 miles at 75,000 miles.
Duncan Ward, BCA’s LCV operations director, said: “We are now seeing the return of more typical market conditions with balanced supply and demand and elements of seasonality taking effect.
"The market was strong in September with average values increasing across the board and good levels of demand from buyers for well presented, good quality commercial vehicles.”
Ward said, however, that BCA is continuing to see a large number of vehicles in poor condition and it is having a significant impact on price and conversion rates.
The difference in average value between a condition 5 and a condition 4 van is several hundred pounds and around 12 percentage points when compared to CAP.
Average conversion rates rise sharply as condition improves, underlining that condition equates directly with saleability and demand.
Average part-exchange LCV values rose for the second month running, up by £32 (0.8%) to £3,842 – the highest monthly value recorded this year. CAP average comparisons fell back by a point to 101.1% but remain ahead of the fleet & lease sector. Year-on-year values were ahead by £264 (7.3%), although CAP performance declined by three points over the year.
The fleet and lease sector recorded average values of £6,416 in September, an increase of £228 (3.6%) over August and the first monthly rise in values since March of this year. CAP performance rose marginally to 99.3% and retained value against MRP (Manufacturer Recommended Price) imoproved slightly to 33.95%. Year-on-year, values were down by £134 (2.0%), with performance against MRP down by more than two percentage points.
Nearly-new LCV values averaged £14,152 in September – an increase of £707 (5.2%) compared to August. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor, as well as the continuing availability of ‘new shape’ models reaching the used market.