Industry News

BCA – ongoing pressure on quality impacting LCV values in June

posted on 09/08/2023
BCA – average values remain consistent for the third consecutive month

LCV values averaged £9,205 across June, down by £434 (4.5%) compared to May and representing the lowest monthly average value recorded in over two years.  The detail behind the values shows the shift in stock mix heavily influencing the movement compared to earlier in the year.

Sold volumes of light commercials remained positive across BCA’s daily programme of online LCV sales as buyers and vendors remained reasonably aligned on pricing expectations.  Buyer numbers continued to rise month-on-month, as they have for most of this year.

Performance against price guides fell to 97.5% (from 98.9% in May), underlining the widening disparity between values paid for the very best condition light commercial vehicles and those realised by more poorly presented vehicles.   

Stuart Pearson, BCA COO UK commented “The two tier market developing in the LCV sector is typically seen when volumes rise with an influx of poorer quality stock affecting the mix.  Vendors are increasingly aware that vehicles in poorer condition have to be valued realistically to generate attention from buyers.  This is exacerbated when corporate volumes of similarly specified, base colour and often poor condition vans are added to the mix – these have to be carefully managed to avoid depressing overall values.”

“In contrast, interest for well presented, better grade vehicles that can purchased and retailed from the forecourt quickly remains as high as it has all year.  We continue to see some exceptional values generated for LCVs with a strong retail specification and in a good colour, particularly for vehicles with a relatively low mileage and on a recent registration plate.”

He added “Whatever the market conditions, valuing stock in line with market expectations is critical to successful remarketing.  Supply and demand will always influence values, with the best quality stock continuing to attract premium prices and sellers needing to pay close attention to the condition of older stock.”

Pearson concluded “BCA’s Decision Intelligence team continue to keep abreast of the current evolving picture in the wholesale sector and work closely with our sellers to ensure that their pricing strategies are realistic and in tune with market sentiment, and that our buyers have everything they need to make informed decisions when bidding.”

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