The National Association of Motor Auctions (NAMA) published its Light Commercial Vehicle (LCV) market report for November today.
The report shows that during November the average values of used LCV’s at auction across the board declined by -3.6% from £4,681 to £4.512 between October and November. Total sales volumes saw a fall of -12.6% with a total of 7,963 units being sold.
After the strength seen in October, it was to be expected that November’s figures would struggle to impress. With average age and mileage having risen, it doesn’t come as much of a surprise that prices declined. Over the past year, sales volume grew by 20%, average mileage and age for LCVs increased by 3,116 miles and 3.8 months respectively. Yet encouragingly, both the number of entries required to sell each LCV lot and days on site were slightly lower, whilst conversion rates and prices improved by 3% & 7%.
The price falls recorded in November correlate closely with the pattern of mileage increase recorded across the various age bands, making them less attractive to trade buyers looking for desirable stock.
Following on from October’s spike in sales volumes, a fall in November of 12.6% signalled a return to trend.
Alex Wright, Chairman of NAMA Commercial Vehicle Group commented, “In last month’s NAMA report, the strength of the marketplace for LCVs had hit a high point with the general sentiment being that things were as about as good as they were going to get. Therefore, the -3.6% decline of average values of used LCV’s at auction across the board, is not a true reflection of the increase in age and mileage.
“The market is clearly still on at an all-time high with no visible signs of it ending anytime soon.
“It is unlikely that there will be any marked uplift in the wholesale marketplace for LCVs until the New Year has found its stride, yet at that point there is every prospect that a series of strong months can be delivered. With the UK’s economy performing better than had been predicted, it is likely that 2014 will be another profitable year for our industry”.
Notes for editors: NAMA is the auction division of the RMI. NAMA market information is based on data supplied by its National members operating in the remarketing sector. The monthly sample size is up to 90,000 vehicles. The full report is available on request.
Rupal Rawal, Communications Assistant
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