Fleet and lease LCV values rise but pressure mounts

AVERAGE light commercial vehicle auction values increased marginally in the fleet and lease sector but fell in the dealer part-exchange and nearly-new segments last month, according to BCA’s latest analysis.


Used LCV values fell by £45 across the board in March to £4,227, a 1% drop from the February figure and 5.7% behind the 20-month high recorded in January.


Additional activity in the fleet and dealer sectors with the new registration plate meant stock levels rose quite sharply in the wholesale markets and sold volumes rose at BCA by nearly 10% in March compared to February. That also impacted on conversion rates which fell back from the high 80 and 90% figures seen earlier in the year.


The March average figure of £4,227 was the lowest recorded since August 2011, yet despite this, performance against guide prices improved by half a point to 98.9%. Year-on-year, March 2012 was £47 ahead of the same month in 2011, equivalent to a 1.1% improvement – despite the average age and mileage rising by seven months to 57 months and over 6,000 miles to 77,800 miles in the same period.


Values in the fleet and lease LCV sector in March, increased by £33 (0.6%) compared to February. Average values remain some £300 ahead of where they were last summer, with average mileage and age remaining largely static.


Fleet vans averaged 98.9% ofCAPin March, up nearly one point compared to February. Retained value against manufacturer recommended price over 44 months and 70,000 miles was 32.73%.Year on year, March 2012 was £392 (8.5%) ahead of the same month last year.


Duncan Ward BCA’s general manager – commercial vehicles, said: ‘While overall values declined for the second month running, fleet and lease values actually improved which underlines the desirability of one-owner professionally managed vans in the used marketplace. The fleet and lease sector has seen generally higher values since September last year and there is little sign of demand easing for good quality LCVs.”


Ward added: ‘However, looking ahead, we expect volumes to rise in the short-term as corporate de-fleets filter through and this must have an effect in a supply and demand marketplace.


‘With the summer months ahead – typically quieter if previous years are to be believed – there could be some pressure on conversions and values ahead.’


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