Light commercial vehicles still performing well, says BCA report

Light commercial vehicle (LCV) values are well ahead year-on-year, despite falling for the second month running, according to British Car Auction's (BCA) latest Pulse report. Average vehicle values of LCVs were £4766 in June, falling 2.1 per cent from May, with an average age of around 58 months. BCA's Duncan Ward 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 and 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 [vehicles with] high mileage and damageî. Many corporate sellers now appear to be investing in pre-sale preparation, enabling sale values to be higher than they would have been with visible damage: '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,î said Ward. "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 five-year-old, 100,000 mile van, without a straight panel to its name, back to 'showroom condition' is likely to be less rewarding,î said Ward. Values in the fleet and lease sector were up marginally by 0.5 per cent in June, to £5,973, with year-on-year showing better growth at 20.3 per cent. Part exchange van values have now fallen 10.6 per cent since April's record high; almost-new LCV values also fell by 4.6 per cent in June. 'The summer months are traditionally 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,î said Ward. 'Now would be a good time for volume sellers to review their remarketing plans and make sure they are fully in tune with market sentimentî.