On first inspection, the latest figures released by the National Association of Motor Auctions (NAMA) are less than promising. However, once the traditional summer slowdown is taken into account, the used LCV market appears to be in good health.
For June the average sale price of light commercial vehicles fell by £33 to £4,289. Meanwhile, sales for the month fell by 19 per cent from May’s figures, to 6,255 units from 7,722.
There was also an increase in the average length of time vehicles were in stock, which industry insiders have put down to the high number of vehicles sold in May and the annual midsummer slowdown.
Despite the figures above indicative of a decline in the market, the June report from NAMA show that a good degree of underlying strength still exists in the marketplace. Some promising figures from the report reveal an encouraging increase in conversion rate (the number of entries required to achieve a sale) and a reduction in the average age of LCVs on the market.
Retailers often experience more problems trying to sell high mileage stock, but it is still important to have older stock available to satisfy every segment of the market. Currently it is thought that high mileage vans are being made available at prices which will come under downward pressure whilst they remain abundant. In June just 23 nearly new LCVs were available from auctioneers across the UK leading to an encouraging number of sales across all age bands.
With half of 2013 already behind us, the positives in the marketplace appear to be far outweighing any negatives. A balance has been reached between supply and demand with both vendors and trade buyers adopting a flexible approach when buying and selling.
Despite the positive outlook, the summer hiatus is not expected to cease until late August, when the market will return to its normal rhythm before lifting again in September.
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