NAMA Commercial Vehicle Report January 2013

Published 11/02/2013 00:00:00 in Press Releases


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


The report shows that during January the average values of used LCV’s at auction across the board decreased from £4,700 to £4,315, equivalent to a 8% decrease between December and January.  However this is a less pronounced decline than the 4% when compared with November’s market.  Comparing to the November market gives a more realistic indicator of the market than December where volumes were extremely low.


Total sales rose significantly in January from 3,551 to 6,138, representing a month-on-month increase of a massive 73%.    Again this should be taken in the context of seasonally low volumes during December.

In January the prime market drivers were the balance between supply and demand coupled with the quality of the stock on offer.


Mileage changes by age


Such a large increase in mileage across all sectors indicates that companies have been holding on to their LCV fleets for longer but are now beginning to release these vehicles into the market place  resulting in an influx of older, higher mileage vehicles to be sold.   These are predominantly vehicles used during the pre Christmas period for deliveries which the fleets held on to until the busy trading period was over. This would also go some way to explain the fall in prices shown in the chart below. 


Price changes - by age


Last month NAMA reported that it was only the less than two years of age sector that suffered a fall in value. However in January each age band suffered a significant decrease in value with the over six year of age sector suffering the biggest decrease in price.  This can be explained by significant increase in mileages as vendors work their fleet’s harder.  This again supports the argument that fleets are starting to change the vehicles they held on to for longer during the economic downturn. 


If the volume of vehicles on offer in each price sector falls during February it is likely that prices will begin to increase. If vendors ensure that a good mix of well prepared LCVs are offered in volumes that can be readily absorbed in the marketplace we can look forward to a strong performance during 2013.

Alex Wright, Chairman of the NAMA Commercial Vehicle Group commented “Despite the wider economic uncertainty affecting the short time financial outlook for SMEs there is still a demand for quality vans and pick-ups. The low conversion rates and values do give a slightly false picture of the market hiding the fact that auction halls have been extremely busy during January and early February’.


“From February onwards if the supply of good quality, lower mileage  LCV’s remains subdued and demand for them remains robust,  it is feasible that prices will start to rise again.”


ENDS


Notes for editors:


Keely Scanlan, Press Officer

Tel: 020 7307 3410

Mob: 07825097697

Press Office direct line: 020 7307 3422

Press Office fax: 020 7307 3406


Web: www.rmif.co.uk Email: keely.scanlan@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.

motor industry in Scotland.

   

Back to Articles
Back to Articles

Cookies

This site uses cookies. Some cookies are essential to ensure our website works for you in the best possible way. You may delete and block all cookies from this site, but parts of the site may not work. To find out more about cookies on this website and how to delete cookies, click here to see our cookie statement.

Close