Used commercial vehicle prices set new records during the second quarter of 2014, according to remarketing specialists BCA.

The firm said that average prices for LCVs rose to £5,460 during the second quarter, 11.9% (£583) higher than the same period last year.

Average age and mileage were broadly in-line with last year’s figures, at 58 months and 79,140 miles respectively, with sales prices continuing to average 100% of CAP book price.

Longer term value growth in the used LCV sector can be seen when comparing 2014 to 2012.  Average values have risen by £1,181 (27.5%) over the 24 month period as the shortage of good quality stock continues and demand increases as economic conditions improve.

Source: BCA

Source: BCA Pulse

Commenting on the figures,

BCA’s General Manager – Commercial Vehicles, Duncan Ward, said:

“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.

News of massive infrastructure projects such as HS2 which will generate thousands of construction jobs, as well as numerous A-road improvement schemes and house building projects will do much to improve confidence in small businesses serving the civil engineering and construction industries.  The building and associated trades are some the biggest buyers of used LCVs, so we should expect demand to remain relatively strong in the months ahead.”

“Additionally, the continued growth in online shopping and home delivery services has created another layer of demand for used panel vans, which is keeping values firm.”

Mr Ward emphasised that quality and specification are key, noting that:

“Competition remains very strong for retail quality used stock, and values for these best quality vans remain exceptionally strong, typically outperforming guide expectations by some considerable margin.

Buyers particularly like any vehicle with a good useable specification or specialist equipment and there is always demand for Lutons, dropsides and tippers.”

Vanrental.co.uk says:

It’s said that a classic symptom of a stock market bull run that is approaching its peak is when taxi drivers, neighbours and work colleagues start discussing stock tips.

In much the same way, the never-ending rise of used van prices seems to have become a universal topic of conversation within the industry — which makes me think that this trend may be nearing its peak, as I’ve said previously.

Although timing the top is nigh-on impossible, I’m standing by my judgement for now, as I still believe that changing demand dynamics — as new van registrations rise to pre-recession levels — could be the first trigger for changes to the supply-demand balance in the used marketplace.