Auction prices for used LCVs fall in March

Prices for used LCVs at auction have slipped below guide estimates as greater levels of stock enter the market.

According to BCA, used LCV values averaged 96.5% of guide price across the board during the month, compared to 101.2% the previous month and 106.5% a year ago in March 2021.

Average prices for used LCVs at auction rose above £10,000 for the first time in July last year and have remained high due to a shortage of stock.

Values stood at £10,133 at BCA in March, the fourth consecutive month that average values have exceeded £10,000 and the third highest monthly value ever recorded. 

Year-on-year values for March 2022 were ahead by £680 (7.2%) compared to March 2021 when the third UK lockdown restrictions were beginning to ease. 

Despite this, BCA believes that dynamics are changing as external economic factors influence the wider marketplace.

Stuart Pearson, BCA COO UK, said: “External economic factors continue to impact the wider used LCV marketplace, and trading conditions have toughened somewhat in recent weeks. 

“With sale entry rising, the market has been presented with a greater choice of stock and we are seeing much more selectivity from our buyers.  Underlining this, price guide performance has fallen notably in recent weeks as the market dynamics change.

“Demand remains buoyant for LCVs in a good retail colour and specification, but as standard models begin to appear in greater volumes they need to be valued in line with market sentiment to attract the buyers. 

“Similarly, those vehicles offered for sale with cosmetic or mechanical issues are becoming much more price sensitive.”

BCA’s commercial vehicle auctions offer up to 700 vehicles each day and attract up to 2,000 different buyers each week. 

Sales of new LCVs in March were down 27.6% year-on-year as supplies of large and medium panel vans continue to be constrained.

Registrations of large vans, which represent more than two thirds of the new LCV market, totalled 29,230 units, down 18.9% or 6,802 units on March last year.

The decline in medium-sized vans, between 2.0 and 2.5 tonnes, was 27.6% or 2,122 units .

Small vans, meanwhile, decreased by 2,186 units (a 70.8% drop) and pickups by 4,176 units (-48.4%).