AVERAGE LCV values in May 2022 fell below £10,000 for the first time since December 2021 as demand shifted in the used market and ongoing external economic pressures continued to be felt.
Average values have steadily reduced since January this year against the backdrop of record fuel prices, the cost-of-living crisis and rising inflation.
LCV values averaged £9,517 at BCA in May, down by £488 (4.9%) compared to April, with performance against guide prices static at 97.4% over the month. Year-on-year, values for May 2022 were still ahead by £142 (1.5%) compared to May 2021.
Average price data shows some volatility in recent weeks however special events can play heavily into these variances. Vans suitable to be put to work in the burgeoning home delivery sector along with more specialist vehicles that support the civil engineering, building and construction trades still remain highly desirable, but condition and presentation have become increasingly important for professional buyers.
Stuart Pearson, BCA COO UK commented “Over the past few weeks, the LCV market has seen reasonable competition for the best stock that can be put straight to work, but far less interest in poorer condition, lower grade vehicles. This is not unusual considering the current economic climate, however it is placing significant pressure on the prices of some vehicles that only a few months ago were flying out the door. Condition is now definitely ‘king’ as professional buyers are totally focussed on the vehicles that can be turned quickly.”
He added “Alongside the general market movements, the LCV sector is also experiencing a shortage of parts largely caused by the Ukraine conflict and the impact following the fallout from the pandemic. This makes professional buyers even more reluctant to purchase vehicles requiring mechanical work due to the extended period it is likely to take to process them for retail sale. We’re working closely with a number of customers to use our scale and production capability to support in this area.”
He concluded “Despite the current pressures, the used sector remains the key source of stock for LCVs as the new sector remains in the doldrums, down 25.1% year-on-year in May with supply chain issues continuing to affect OEM activities and many of the traditional sources of nearly new vehicles, virtually dried up.”
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