Automotive Industry Digest

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Residual value update

LCV values remain under pressure in March as market dynamics change

Despite rising sold volumes and March 2022 recording the third highest average monthly value for LCVs, BCA highlights that dynamics are changing as external economic factors influence the wider marketplace.

LCV values averaged £10,133 at BCA in March, the fourth consecutive month that average values have exceeded £10,000 and the third highest monthly value ever recorded.  Values averaged 96.5% of guide price across the board during the month.

Year-on-year values for March 2022 were ahead by £680 (7.2%) compared to March 2021 when the third UK lockdown restrictions were beginning to ease.

Stuart Pearson, BCA COO UK commented “External economic factors continue to impact the wider used LCV marketplace, and trading conditions have toughened somewhat in recent weeks.  With sale entry rising, the market has been presented with a greater choice of stock and we are seeing much more selectivity from our buyers.  Underlining this, price guide performance has fallen notably in recent weeks as the market dynamics change.  BCA Valuations shows that LCVs averaged 96.5% of guide prices in March 2022, compared to 101.2% the previous month and 106.5% a year ago in March 2021.”

He added “Demand remains buoyant for LCVs in a good retail colour and specification, but as standard models begin to appear in greater volumes they need to be valued in line with market sentiment to attract the buyers.  Similarly, those vehicles offered for sale with cosmetic or mechanical issues are becoming much more price sensitive and BCA has been working closely with vendors to recommend where economical refurbishment and SMART repairs can increase desirability for stock.”

Pearson continued “As all BCA’s sales are staged online our buyers can access sales via BCA Online or the BCA app, giving them access to a nationwide basket of stock every day from wherever they happen to be.  Vehicles are available from the widest number of vendors including fleet, lease and dealer stock, at every price point and condition standard, at a variety of ages and mileages, with every possible make and model represented, including newer, retail ready stock.”

“This means the playing field for stock purchasing becomes much more level with all customers having the same access to sales across the UK, and at a time that will suit them.  Not only does this drive purchasing efficiencies for buyers, but it vastly enhances the opportunity to look across a broader range of stock that would be visible in any physical sale, no matter how big the site.”

BCA’s commercial vehicle auctions offer up to 700 vehicles each day and attract up to 2,000 different buyers each week.

(* Source: BCA Valuations)

*Article Source

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