14 Dec 2009
November rally for LCV values
November recorded the highest average LCV values for two years as buyers competed strongly in the auction halls and online. Average van prices increased to £3,902 from the £3,858 recorded in October, and even outpaced the January 2008 high point of £3,868.
The rise of £44 - equivalent to a 1.2% increase - may be modest but will be welcomed by vendors as there were indications that values may have already peaked earlier this year. However, another strong month in the auction halls at BCA saw values climb yet again.
Model mix was broadly the same, although reduced numbers of higher value nearly-new vans were sold in November, which makes the increased average value seem relatively even stronger. Volumes were slightly down on last month.
BCA's Duncan Ward commented "Year-on-year values are now ahead by an astounding £1,089 - the biggest year-on-year margin on record and reflecting both the strong performance in November 2009 and just how weak the LCV sector was in November 2008."
Despite the average price increase, performance against CAP continued to fall and settled at 98.36%, with a further 3 points lost against last months average. CAP performance has fallen by over six points in the last two months alone.
Fleet & lease van values were the main beneficiary of the increase as prices increased by £146 to £4,344 (up 3.5%) - the highest average value on record. Average age and mileage remain little changed over the past 24 months at around 41 months and 62,000 miles, although both price and CAP performance have been on a rollercoaster ride.
Ward commented "End users have remained very active in the marketplace and delivery firms expanding capacity in advance of Christmas have no doubt buoyed the average price. Year-on-year, fleet & lease van values in November 2009 are £1,256 - a staggering 40.6% - ahead of the same period last year."