THERE’s good news if you’re in the market for a used van – LCV values dropped in June for the second month in a row, according to the latest BCA Pulse report.
The average used LCV price in June was £4766, a decrease of £104, or 2.1%, compared with May. Average mileage increased although the average age remained slightly less than 58 months.
Fleet & Lease values experienced a marginal improvement over the month, but dealer part-exchange sectors saw values drop for the second month in succession, and now stand at 10.5% below April’s record levels.
But year-on-year, June 2013 was 14.2% (£595) ahead of 2012, demonstrating a considerable increase on the position compared with May. Age declined and mileage increased over the period.
Average CAP performance was significantly higher in 2013.
Year-on-year table: Fleet & lease vans
|Fleet/Lease||Avg Age (months)||Avg Mileage||Avg Value||Sale vs CAP||Sale vs MRP|
For the second month running, part-exchange values declined, decreasing by £135 to £3,036 – a 4.2% drop. And compared with April’s record-breaking average value, part-exchange values are now 10.6% down.
Over the month, CAP comparisons fell to 101.73% but continue to outperform the Fleet & Lease sector.
Year-on-year values were ahead by £191 or 6.7%. Average age declined but average mileage significantly increased, by 10.1% compared with 12 months ago.
Year-on-year table: Part-exchange vans
|Part-Ex||Avg Age (months)||Avg Mileage||Avg Value||Sale vs CAP|
The value of nearly new LCVs fell by £600 to £12,241 in June (a 4.6% decrease) while CAP performance improved to 99.92%. It’s important that this is taken in the context of the very low volumes reaching the market and the model mix.
Nearly new LCVs
|Nearly new||Avg Age (months)||Avg Mileage||Avg Value||Sale vs CAP|
BCA’s Duncan Ward told Business Vans: “While average values declined for the second month running across the board, the low supplies of good retail-quality vans mean demand for these vehicles remains strong and this has benefited the Fleet & Lease sector, where values rose yet again.
“The overall decline in average value is simply a result of buyers becoming a little more selective and not showing the same willingness to bid as strongly on high mileage and damage.
“Many corporate sellers are investing in pre-sale preparation – this is particularly important where vans have been body wrapped in vinyl livery as it allows their vehicles to be presented to the used buyer with an original factory finish.
He said the summer months were traditionally quieter in the wholesale business van markets, and with the school holidays imminent at the time of writing, demand should soften a little during the next few weeks.
“Now would be a good time for volume sellers to review their remarketing plans and make sure they are fully in tune with market sentiment,” he added.