Used van values start rising again
5th July 2011
The used LCV market bounced back strongly in May following the disruption caused by a combination of rising fuel costs, the late Easter, the Royal wedding and the hottest April on record.
Average values climbed to £4,218 after dipping to a 17-month low of £3,969 in April, according to the latest available figures from BCA. Sold volumes also increased – by 6.7% - but have a long way to go to recover from the 31% fall recorded between March and April. All three sectors – fleet & lease, dealer part-exchange and nearly-new – saw values improve in the month.
Overall, values improved by 6.2% in May. However, year-on-year values remain behind by £248 compared to May 2010, when the market was peaking in terms of value.
“Buyer confidence has notably improved,” said Duncan Ward, BCA’s General Manager, Commercial Vehicles. “May had the feel of a typical late spring/early summer marketplace, with some price pressure on poorly presented vans but lots of interest in the most desirable vehicles. Sales volumes and conversions have improved and supply and demand is reasonably well-balanced.”
Commenting in its monthly newsletter, the Vehicle Remarketing Association said: “The used van market continues to hold up well, with strong prices in most main categories.
“A number of larger fleets are finally replacing ageing stock with new vans which, in turn, is releasing much-needed used stock into the market. These are being snapped up by small business and the self-employed, with many happy to buy three to five year-old vans, in an effort to keep a lid on operating costs.”