Analysis of Light Commercial Vehicle Resale Numbers
Though the reported prices of used light commercial vehicles (LCVs) showed a marked decline during the month of January, a careful analysis of the various contributing factors actually points to the chance of a robust rebound in prices of used vehicles going forward.
Between December and January the average resale price at auction fell by almost eight percent, but industry analysts point to the fact that November’s sales had fallen by four percent while December’s inventory volume was so low that the entire month almost shouldn’t be counted within the calculation. A more accurate trend analysis would leave December’s numbers out entirely; a good indication of exactly how low December’s sales volumes fell is the fact that the increase in sales from December to January was almost 75 percent. Leaving the December numbers out make the value price drop disappear entirely, as November had shown a drop of four percent, and December’s prices actually increased a bit due to businesses needing vehicles quickly to meet their holiday delivery needs.
Another important factor to be kept in mind when analysing resale prices is the distinct increase in the mileage history on the vehicles that are available for resale. Statistical evidence points to the fact that fleet owners have been holding on to their light commercial vehicles longer and putting far more mileage on their commercial vehicles before putting them up for resale. Though this accounted for a decrease in sales price, particularly in those vehicles that are six years old or older, it also is an indication that the fleet owners who have been holding onto their vehicles are now ready to replace them, and that this is likely to result in a sudden decrease in the number of used vehicles available on the market. Industry experts are forecasting that as supply dwindles but demand remains high, there is a good possibility that this will drive the resale prices up. With this in mind, now would be a good time to consider buying a quality used van from one of our dealer locations throughout Dorset and the South West.