Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Used van values creep up in July, says BCA
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Used van values creep up in July, says BCA

Date: 25 August 2016   |   Author: James Dallas

Average used LCV values edged up by just £23 to £5931 in July compared to the previous month, according to the BCA Commercial Pulse report.

Year-on-year, however, values rose by 6.9% (£387).

The average age of vans sold at BCA's auctions fell by just under three months to 53.4 year-on-year while mileage dropped by 6550 miles to 69,632.

BCA's head of commercial vehicles, Duncan Ward, said: "We expected to see some pressure on average values between now and the new registration plate in September. Volumes have risen in the wholesale markets with continuing questions over poor condition stock."

Ward added that while sales prices were holding up, this was due to the influx of younger, lower mileage vehicles into the market.

"Buyers have more choice now than they have experienced at any time this year and are understandably focusing on the best-presented vehicles," he said.

Fleet and lease LCV values rose marginally month-on-month to £6779 in July, part-exchange values dipped to £3748, continuing a decline from January's highpoint of £4049 and low-volume nearly-new values rose sharply by £2315 between June and July to £14,361.

Meanwhile, residual value expert Glass's claimed fleets hanging onto their vans in a bid to achieve "unrealistic and inflated valuations" were causing distortions in the market.

"This means businesses are holding onto vehicles much longer than they should, so are taking longer to convert valuable assets into cash," Pontin said.

"Also, while they remain on the books, the value of these vans nearly always tend to continue falling, leading to a double loss."

Pontin warned that eventually the vans ended up being "dumped" on the market having failed to reach over ambitious book values, leading to a sudden fall in value as oversupply occurs.