DROP: LCV values down in June
Headline light commercial vehicle values fell for the second month running in June – but values remain well ahead year-on-year.
British Car Auction’s (BCA) latest Pulse report shows last month’s average resale figure fell £104 (2.1%) to £4,766, with average mileage increasing for the second straight month.
However, year-on-year, June 2013 was ahead by £595 (14.2%), while age has declined and mileage rose over the same period.
Fleet and lease values improved marginally over June, up by £31 (0.5%) to £5,973 compared to May – the second-highest value on record.
Performance against CAP improved to 99.8%, while retained value against Manufacturer Recommended Price fell to 35.21% from 36.05%.
Year-on-year values remain well ahead, however, up by £1,008 (20.3%) compared to the same month in 2012.
Average age and mileage are impressively down over the year, while retained value against MRP improved by more than three points.
Duncan Ward, of BCA, said: “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.”
“While Smart Preparation is largely used by car vendors, its application can be equally important in the van market, provided vehicles are chosen carefully.
“For a 2009 model year van at 10,000 miles in good condition, but with a few small dents on 2 panels, Smart Prepared can be a cost efficient choice for the vendor.
“The return on the investment to bring a 5 year old, 100,000mile van, without a straight panel to its name, back to ‘showroom condition’ is likely to be less rewarding.
“The summer months are traditionally been quieter in the wholesale van markets and with the school holidays imminent at the time of writing we should expect to see demand softening a little over 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.”