The value of a used light commercial vehicle (LCV) was 5.7% higher in June 2016 compared to the previous year, according to the British Car Auctions (BCA) pulse report.
Average values for LCVs sold by BCA were £5,908 in June, a rise of £321 compared to the same period in 2015. This was an increase of just £16 on May 2016.
The average car age fell by over 3 months, to 53.27 months and average mileage fell by over 6000 miles, to 69,618, in a year-on-year comparison.
However, despite the increase in values, the market may soon be heading for a decline in the summer months.
Duncan Ward, head of commercial vehicles at BCA, said: “History shows us that the commercial vehicle market typically slows down over the summer months, and we would expect to see some pressure on average values between now and the new registration plate in September."
In 2015, prices fell in the summer months, losing £80 in average value between June and August, and ending the summer on £5,507, according to BCA.
Ward attributes this to increased selectiveness among clients, which will drive prices down as buyers are sought for less desirable vehicles.
“The less desirable stock, typically in corporate colours, needs to be competitively valued if it is to sell first time.”
Fleet and lease sector
The fleet and lease sector experienced a 0.4% loss in average recorded values compared to May, down to £6,754 in June. Retained values against manufacturer recommended price (MRP) were also down in June, falling to 35.11% from 35.7%.
Year-on-year (YoY) values experienced a 5.3% increase, for a rise of £415. The average age dropped by 2.18 months to 40, and average mileage fell by 100 miles, to 61,089.
Average part-exchange LV values were static in June, though gained £35 for a 0.9% increase in year-on-year (YoY) values.
The average age remained at approximately 82 months, while average mileage declined almost 1000 miles over the year, down to 91,061 in June 2016.
Nearly new values experienced a sharp decline in June, falling by over £2,000 compared to both the previous month (£14,377) and in a YoY comparison (£14,291) for an average of just £12,046.
BCA attributed the large fall in values to very low volumes reaching the market, the model mix factor, and the rise of ‘new shape’ models reaching the used market.