Story: COLIN DAWSON
In the market for a used business van? It could be a good time to buy – according to vehicle auction company BCA, average used LCV values fell by £154 (3.6%) to £4,075 in August compared with July, although year-on-year figures remained ahead.
Year-on-year, August 2012 values were marginally ahead of the corresponding month in 2011 by just £19, although average age and average mileage increased by 7.5% and 5.9% respectively. Performance against CAP slipped by more than four points, year on year.
The average age of LCVs increased by one month to over 58 months, although average mileage fell to 78,000. Values increased in the dealer part-exchange sector, but fell for fleet and lease and nearly-new vehicles. Performance against CAP average improved over the month by more than a point to 99%.
BCA general manager – commercial vehicles, Duncan Ward, told Business Vans: “August is typically a weaker month for demand and that factor, combined with a slight change in mix as more lower-value part-exchange vans were sold, saw values fall month on month.
He said little had changed in the wider marketplace. Buyer confidence remained fairly fragile and trade buyers were looking for a quick turnaround and frequently buying to order, rather than speculating on vehicles. “This results in the very best retail vehicles often making exceptional money, while vans in poor condition might struggle for attention,” he said.
The market remains short of good quality, ready-to-retail used vans, and this is set to continue for some time to come. There is a potential shortfall of around 375,000 first-time used LCVs in the marketplace, as a result of the low new-LCV volumes since the onset of the recession in 2008. The effects of this are already being felt but will hit hardest in 2013 and 2014 when replacement volumes reaching the used market from the fleet and lease sector will be exceptionally low.
Monthly values in the fleet and lease LCV sector fell back to £4,844 in August from £5,029 in July. It is the lowest value recorded for a year, highlighting that seasonal pressures still have a part to play. Performance against CAP dropped by a point to 98.6%. Retained value against manufacturer recommended price was static at 30.58%, although average age increased slightly. August 2012 was £193 (4.1%) ahead of the corresponding month in 2011 – despite the average van being both older and of higher mileage this year.
Part-exchange average values recovered in August, improving by £81 to £2,784. CAP comparisons improved by more than a point to 99.93% and increased by over three points in the past two months. Year-on-year values remain well ahead, however, by £258 or 10.1%, with age and mileage both higher in 2012.
Nearly-new business van values decreased by £234 to £10,984, but this has to be taken in the context of the very low volumes reaching the market and the model mix factor. CAP performance fell to 100.72%.
Keep up to date with developments in our business van news section.