Automotive Industry Digest

Latest Fleet News For The Automotive Industry

Residual value update

Used LCV market sees a return to “familiar trading patterns” in August

LCV values averaged £9,864 at BCA in August, down from the figure of £10,220 reported by BCA in July, but still ahead of May and June.

While average values shifted, BCA said that this was largely a result of the change in model mix that is typical at this time of year.

Performance against guide prices improved by nearly two percentage points to 97.5% over the month and year-on-year values were virtually level, with just a £10 differential between August 2021 and August 2022.

Sale conversion rates lifted during August and average weekly values steadily improved during the month, rising above £10,000 in the final week of August.

Stuart Pearson, BCA COO UK said: “The overall picture in the LCV market suggests a settling into more familiar trading patterns as the constraints imposed by the pandemic have receded. Admittedly many economic pressures remain on those small businesses that typically purchase used LCVs at retail, but this is balanced by a shortage of the best-quality, forecourt ready stock in the wholesale sector.

“The ongoing demand for retail quality light commercials means there is plenty of competition for the best examples reaching the market, exacerbated in August as volumes of corporate stock tend to be lower. The few late-plate light commercials on offer can make exceptional values and, as always, the best graded vans with a good specification and in an attractive retail colour remain very desirable.

“It’s becoming a familiar refrain, but the basics are critical in the current market, so vendors should work closely with their remarketing partner to ensure that their LCVs are realistically valued, properly prepared and graded, and accurately catalogued to attract the right buyers.

“Meanwhile, the new LCV market continues to face substantial challenges, with new sales falling by nearly 25% in August as the sector faces ongoing supply chain issues and long delivery times. The wholesale used sector remains the best source of stock for professional buyers and this is likely to continue for the foreseeable future.”

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Automotive Industry Digest

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