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Increasing used LCV values reported by BCA
Date: Tuesday, August 30, 2022 | Author: Sean Keywood
Used LCV values rose by 4.2% month-on-month in July, according to newly-published data from auction firm BCA.
It said the average sale price during the month was £10,220, a £420 increase compared with June, which was also itself a 3% rise compared with May.
July’s average was also a 1.2% increase compared with July 2021.
BCA said improved demand and rising buyer numbers had contributed to the increase in average values over the past two months, following consecutive monthly falls from the all-time market highpoint of £10,808 recorded in January of this year.
It said sale conversion rates had improved by several percentage points in recent weeks, with a notable rise in demand across the 4x4 market and continued interest for conversions and body builds.
However, BCA continues to advise sellers that demand is relatively fragile, with professional buyers focusing on the best-quality, forecourt ready stock that can be retailed quickly with little additional preparation.
In contrast, demand is said to be patchy at the lower end of the market, with poorer condition, higher mileage vehicles struggling to gain interest with buyers, and any hint of an oversupply quickly affecting values of standard specification models.
BCA UK COO Stuart Pearson said: “Given the well documented cost-of-living squeeze and numerous other pressures affecting the wider economy, the LCV sector continues to demonstrate the underlying strength and stability of the used marketplace. To this end, we continue to work with our sellers to deliver condition enhancements through effective and targeted refurbishment, accurate appraisals and realistic valuations that give their vehicles the best chance of selling quickly.
“Average values were boosted to some extent by improvement to product mix, albeit it there was also some seasonal impact on volume. As we are seeing in the car market, it is apparent that a two-tier market has developed, where the best presented vehicles readily attract strong bidding and poorer stock will struggle unless it is very competitively valued.
“Despite the obvious pressures in the used sector, we should expect values to remain reasonably resilient in the medium to long term. The new LCV market fell 20.7% in July, the seventh consecutive month of year-on-year decline as the sector continues to face supply chain issues and long delivery times.
“It means that any business requiring a commercial vehicle at short notice will have to source it through the used sector, which should generate sustained demand and relatively stable pricing in the wholesale markets for some time.”
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