December 2009 displaced November’s place in the record books to deliver a new high for average LCV values as buyers continued to compete strongly for commercial stock right through to the year end. Another £100 plus was added to average van prices over the month as the £4,000 watershed was breached for the first time on record.

Average values increased from £3,902 to £4,008 to establish a new high point for LCVs. The rise of £106 was equivalent to a 2.7% increase – and marks the end of a year that saw average values start below £3,000 in January and end above £4,000 in December. Over the year values increased by 37% - a mark of both how strong the demand was in 2009 and how far prices had collapsed over the previous year.

Model mix was broadly the same, although there were reduced numbers of higher value nearly-new vans for the second month running. Volumes were slightly down on last month as would be expected in a short working month.

Despite the average price increase, performance against CAP continued to fall for the third straight month, settling at 95.21% and representing another three points off last months average. Overall CAP performance has fallen by nearly 10 points since September.

Duncan Ward, BCA’s General Manager Commercial Vehicles commented “The year-on-year price differential increased yet again, with December 09 values ahead by a resounding £1,236 – the biggest year-on-year margin on record - and reflecting both the strong performance in December 2009 and just how weak the LCV sector was generally during 2008.”

He added “End users remained very active in the marketplace and delivery firms expanding capacity in advance of Christmas no doubt buoyed the average price during December. Over the year, average values increased by a staggering 37%, reflecting the strong demand for good quality stock.”

Ward added “The outlook will remain good for the first quarter while supply and demand are so well balanced, but condition remains critical and any vehicle that is carrying excessive damage – cosmetic or otherwise – is likely to struggle for attention, while good, clean vehicles should meet market price expectations and more.”