Used LCV Prices Fall Slightly
The National Association of Motor Auctions (NAMA) has released its statistical data for the month of March and shows a slight drop in the average price for used light commercial vehicles between February 2014 and March 2014. The price at auction dropped from £4,844 to £4,794, an overall decrease of one percent.
At the same time that the prices dropped, volumes increased by 7.2%, marking an overall rosy outlook for sales metrics in general. One particularly bright spot was that the lots that sold the first time that they were offered rose by 82%, and the average number of days that LCVs were available before being sold dropped to 12.4. Average mileage on vehicles sold was 83, 123.
With the overall age of the LCVs sold dropping by two months from the previous month, the £50 price drop was seen as inconsequential, and experts say that the 16.3 percent increase in number of older LCVs sold probably accounts for the slight drop in prices. Younger vehicle prices rose by as much as 9.3%.
Auction companies are anticipating that there will be more inventory available in the coming days, as more and more businesses are replacing their existing fleets with newer vans. Still, companies are holding on to their late model vehicles and only selling off older ones. Overall, the view is that the economy is improving and more companies will be purchasing good used LCVs in coming months. The only concern is whether so many companies will replace existing stock that the market becomes flooded with used vehicles, but at this point there is no sign of that happening.