The average price of used LCVs sold at auction rose by 17.2% in the second quarter of this year, according to Aston Barclay.
The remarketing company said the increase compared with Q1 was helped by a fall in average vehicle mileage, from 102,933 to 94,000 miles, and a consistent average age of 61.3 months.
Aston Barclay said auction conversion rates were running consistently high, at 75%, despite signs that used volumes were increasing on the back of improved new vehicle production.
However, it said dealers were being more selective about bidding on vehicles with damage and what they were prepared to pay.
Aston Barclay said used value guides were yet to reflect changing market conditions, which meant setting reserves on individual vehicles was important to keep conversion rates high.
It said Q2 also saw the effect of higher interest rates on some smaller businesses, which became more cautious when buying replacement or additional used LCVs to protect their cashflow. This is said to have helped increase demand for used stock with full-service histories and in good condition.
Aston Barclay national LCV manager Geoff Flood said: “We are starting to see a market correction based on used volumes improving and demand slowing down as we enter the summer period.
“Add to that used value guides being out of sync with the market then everyone is having to work harder to keep the market moving. Importantly the market remains stable.”
