Motor Industry News
My Car Check Trade used LCV market overview July 2015
Van values slipping due to volume and the summer lull
“The good news is that the market has a healthy supply of stock. The bad news is that it is very repetitive.” - David Hill
My Car Check Trade is the trade valuations arm of CDL Vehicle Information Services. Based on cutting-edge industry data and feedback from independent and franchised dealers, these monthly bulletins highlight the most significant trends in the UK light commercial vehicle (LCV) market.
My Car Check Trade’s LCV expert, David Hill, commented: “As we enter July, the start of the traditional holiday season, we expect the market to slow down. Some dealers report that they are still busy with retail enquires and this will probably continue until the middle of the month when the schools close. The good news is that the market has a healthy supply of stock. The bad news is that it is very repetitive and dealers already have this stock for sale. They are only buying ready to retail stock, or unusual models if they happen to crop up. To reflect this, we have reduced prices in certain sectors this month.
“In the small van sector, there’s a wide choice of Ford Fiesta and Vauxhall Corsa. Tidy, clean, low mileage ones sell for trade values, while anything else goes at average value or less. Peugeot Partner and Citroën Berlingo are both around in volume, with more to come. The same can be said of Volkswagen Caddy, with a massive influx of blue 69ps models. These are holding firm on price at the moment, mainly because of the specification, but as the volume comes the values will inevitably fall. Facelift Caddys are about in volume from all sources and unless sub-40k and in out of the box condition, sale prices have suffered. We have adjusted our values accordingly.
“There is plenty of choice in the panel van sector. As ever, the VW Transporter is often top of the shopping list, but be careful when looking at basic specification 84 or 102bhp models with no extras, values are slipping on these variants, but 140 Highline models are generally good news. It is a similar story for Ford Transit with Limited or Trend editions storming away and traders traveling miles to try and buy them.
“Larger panel vans in retail or trade condition are still hard to come by. The few that are about sell quickly. Vehicles that require some body work or mechanical attention are harder to sell as the trade want them to be cheaper to compensate for the spend. If the price isn’t right, trade buyers will always walk away.
“For chassis cab variants it is more about the body work than the badge. Tippers have to be clean with no tarmac or concrete in the rear. Double cabs have to have the rear seats. Drop sides are not even mileage sensitive as long as they are tidy, and it is the same for Luton variants. This is all because demand outstrips supply.
“The 4x4 market is as quiet as usual in July, but the second half of the year will be all about the new model pick-ups coming to market. The new offerings from Mitsubishi, Ford, and Nissan should really shake up the market.”