The cost of expanding a fleet appears to be going up continually as, for the third month in a row, the values of commercial vehicles have reached record levels.
According to BCA, the average value for all light commercial vehicles rose to £5,345 in February 2014, which is up by £23 from January. This was the highest average value seen since Pulse started reporting in 2005 and represents the seventh month in a row when the figures have been above £5,000.
The main reason for the rise in value is down to increased buyer demand, a trend that is set to continue across the coming months.
This was highlighted by general manager for commercial vehicles for BCA Duncan Ward, who said: “This time of the year also typically sees an uplift in the building and construction industries. As a lot of building activity was curtailed due to the wettest winter on record, we expect to see even more interest in tippers and drop sides as the weather improves in the weeks ahead.”
Mr Ward explained that online buyers featured heavily in the sale of commercial vehicles as they accounted for 26 per cent of purchases during February. He said that this was because people believe that stock remains at a premium level.
Over the 12 month period to February, BCA found that values had increased year-on-year by 11.6 per cent of £556. Additionally, it seems that commercial vehicles are lasting longer as the average age of these has risen by between two months and 60 months. Meanwhile, their mileage has gone up by roughly 2,500 miles on average.
Fleet and lease operators also saw a considerable increase in values during February, with these rising by 5.5 per cent or £356 compared to January's results to £6,810.
Part of the reason for the increase in vehicles is down to improvements in the UK's economy, which has pushed up productivity in a number of industries, such as construction and manufacturing, which rely heavily on commercial vehicles.
Posted by Danielle Barge