Despite my predictions, average values for commercial vehicles reached record levels in May, the fifth time in the last six months a new record has been set according to the latest figures from remarketing specialist BCA.

The vehicle auctioneer said that demand for LCVs remained strong throughout the month, and that top quality stock remained in short supply, contributing to a rise in average sales prices, which rose by 3.5% in May, to £5,587.

Year-on-year values remain well ahead, up by £717 (14.7%) over the twelve month period.  Compared to a year ago, age is static at 58 months, while mileage has decreased marginally over the same period.  Average CAP performance is down slightly compared to May 2013, and May’s sales came in slightly below book, with sale prices averaging 99.79% of the equivalent CAP book prices.

After April’s surprise drop in values, May’s strong performance was a return to normal, according to Duncan Ward, BCA’s General Manager – Commercial Vehicles:

“The market returned strongly in May, with conversion rates improving over April and values rising yet again, despite volumes remaining relatively high.  Competition is typically intense for retail quality used stock, with values rising as a result and BCA Live Online buyers continue to play a significant role, accounting for around 30% of volume sold.”

“There can be little doubt that the improving economic background is giving a boost to the used LCV market, and small and medium-sized enterprises (SMEs) remain positive about future prospects.  As this group are the biggest buyers of used LCVs we should expect demand to remain relatively strong in the months ahead.”

Prices have risen relentless since 2012, as this graph shows — the average LCV sale price at BCA auctions has risen by 31% since April 2012:

BCA Used LCV prices April 2012 – May 2014 (graph courtesy of BCA)