NAMA Commercial Vehicle report – February 2014

Published 13/03/2014 00:00:00 in Press Releases

The National Association of Motor Auctions (NAMA) published its Light Commercial Vehicle (LCV) market report for February today.

The report shows that during February the average values of used LCV’s at auction across the board increased by 0.8% from £4,807 to £4,844 between January and February. Despite the slight rise in value, total sales volumes saw a significant -6.6% fall to 8,583 units, however volumes still remain 20% ahead on February 2013 suggesting there is still a healthy demand for LCVs.

It was positive to see that 77% of LCVs sold at the first time of being offered. The average number of days that LCVs remained on site fell to 12.7 and the average mileage was 84,079 miles.

With February delivering positive news on LCV prices, albeit with an overall increase of just 0.8%, it is perhaps more relevant to reflect that over the past 12 months the average price paid for an LCV lot has risen by £586 (+13.7%).

In February, volumes rose for the oldest and youngest LCV age bands whilst numbers for stock between 2-6 years old fell back to give an overall reduction of 6.6%. At 8,583 units, the current volume of LCVs appearing at auction is being readily absorbed. However, whilst demand for vans has remained solid, the growing number of 4x4 double cab pick-ups and larger minibuses on offer, at a time when the sentiment being directed towards them has faltered, are struggling.

Alex Wright, Chairman of NAMA Commercial Vehicle Group commented, “February delivered robust results and was better indicating as to where the remainder of this year is heading. It would appear that monthly volumes will remain well above 8,000 units and destined to settle above 9,000 before too long.

“Over the medium term, should the average number of LCVs being offered at auction each month top the 10,000 mark, then nothing short of boom conditions across the wider UK economy would prevent price slippage.

“With the dominant factor across each LCV sector over the past 18-months having been the shortage of quality used stock, the sizeable increase in retail and trade demand has driven prices ever higher.

“Looking at the overall market this month it is difficult to predict what 2014 holds for the industry. Taking on board sales volumes of 4x4 double cab pick-ups and above 4.0 tonne minibuses, we have prime examples here of just how quickly the market can change and can only hope for a significant turnaround over the coming months”.

 

ENDS

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
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

Web:
www.rmif.co.uk Email: rupal.rawal@rmif.co.uk

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland Trade Association which represents the retail motor industry in Scotland.

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