LCV values under intense pressure
BCA has reported that LCV values came under pressure in October as professional buyers continued to react to the tough economic conditions affecting the wider market, particularly the small business sector.
Following a brief recovery in September when values rose by £368 (4.1%) month-on-month to £9,247, the overall value trend in 2023 has fallen steadily since April’s highpoint.
October recorded a further fall to £8,705, down by £542 (5.9%) month-on-month and the lowest average monthly LCV value recorded since December 2020.
Much of the steady fall in average values this year results from the changing mix of stock and rising numbers of lower grade vehicles reaching the marketplace in recent months.
Stuart Pearson, BCA COO UK, said: “As we have reported in recent weeks, we have a two-tier market operating, where well presented, higher grade vehicles attract a lot of competitive bidding, while older, lower spec volume models can be challenging to remarket, particularly if they require repair and refurbishment.
“Compared to the previous 24 months where new and used supply was constricted and demand was high from retail customers, the current position is an almost complete reversal. Used volumes are lifting and there is more choice around new LCV supply, so it should not be a surprise to see values moving downwards.”
“The market remains very price sensitive and is likely to remain so as we move into the festive period. There will undoubtedly be some seasonality at play, however, with values moving to a level that many feel are more realistic and supply becoming more readily available. These factors could help to kick- start a little more positivity in the wholesale market as we cross into the New Year.”
