16 Feb 15

BCA sees decline in used van prices

The average value of a van sold at BCA in January was £5,460, a fall of £410 from December's record value.  Fleet & lease values fell by £381 (5.5%) over the month, the company reports, while part-exchange values also declined (by £172 or 4.4%) and the low volume nearly new sector saw values climb.  Despite this, year-on-year values remain ahead by £138 (2.6%), with age and mileage increasing.  Performance against CAP was down by half a point compared to 2014. Values for fleet and lease LCVs averaged £6,478 in January - a fall of £381 (5.5%) compared to December's figure.

BCA's Head of Commercial Vehicles, Duncan Ward, commented “We saw some price pressure in the used LCV market in January largely as a result of the significant upturn in volumes available to buyers.  The sharp rise also resulted in multiples of some makes and models reaching the market which is giving buyers plenty of choice and further compounding price pressures.  There are also some issues over quality and presentation as vehicles from corporate sources are returning at generally higher ages and mileages than we were seeing a year ago.  It's a timely warning for vendors that if the quality of stock is declining this will impact on the price performance. We are seeing a two-tier market develop as professional buyers and end users compete strongly for the best presented ‘retail ready’ vans where values typically outstrip price guide expectations by some margin.  In contrast, hard-worked lower spec vans in corporate colours need to be competitively valued to create interest”.

Authored by: Tim Harrup