Values return to form after snowy disturbance
It was business as usual for the commercial vehicle market last month following December’s frosty upset.
According to the latest report from British Car Auctions, average values rose in January across the board with all sectors showing notable price improvements after the coldest December since records began and a shorter trading period over the festive season. Sold volumes also rose by nearly 50%.
Fleet and lease LCV values recovered from two relatively poor months, leaping just over 7% to £4,785.
Although year-on-year values are behind by over £200, it should be considered that the market reached its peak a year ago. Fleet vans averaged 99.01% of CAP in January, a rise of nearly three points over the December figure.
The average value of an LCV sold at BCA in January rose by £155, equivalent to a 3.8% increase over December and the highest average value recorded since June 2010.
“Demand improved significantly in January following a tough end to the year, although there are still some issues relating to poor stock mix affecting the market,” commented Duncan Ward, BCA’s general manager for commercial vehicles.
“After the general shortage of LCVs seen throughout 2010, the market has seen a large influx of vans from business failures and liquidations, many in poor condition or with a low specification.
“We usually see an upturn in interest and demand in the first three months in any year, but concerns remain that the increase in volume will have a dampening effect on the overall market. Conversions and prices have improved, but perhaps not to the level they might have done.”
Mr Ward added that the VAT increase has done little to affect the B2B marketplace and with the March plate change looming, buyers could pick up a premimum vehicle for a snip of the usual price.
“New car sales for the March plate change may not be as busy as previous years,” explained BCA’s Tim Naylor, “but there will still be plenty of ‘pull-through’ of part-exchanged motors for the used car market.
“We will be getting a lot of well-maintained used cars in from fleets and leasing companies who buy new in March. So motorists will be spoilt for choice. They will be able to pick-up what would have been some very expensive cars at new, for a fraction of the price. Some models that cost £50,000 to £60,000 new three or four years ago will go for between £15,000 and £20,000 at auction.”
Click here to find your nearest BCA venue – carandvanauctions.co.uk/CarAndVanAuctions/british_car_auctions/
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