Shoreham car auctions, Lancing, West Sussex.
Demand for used vans ‘rocketed’ in December as twitchy consumers switched away from shopping for new.
That’s the view of Shoreham Auctions which mentioned diminished financial confidence helped strengthen the used LCV market in December and January.
The marketplace for new vans has taken successful. Yesterday the Society of Motor Producers & Trders reported new van gross sales down 20% resulting from “weakened business confidence”.
Shoreham mentioned the financial slowdown has compelled corporations to show to used autos relatively than signal as much as long run finance agreements for brand spanking new autos.
It added that some fleets proceed to purchase used LCVs at public sale to keep away from rising stress from OEMs to order a number of EVs for each 10 new diesel autos they order.
This helped contribute to the strongest December and January SVA MD Alex Wright has skilled in his 35-year public sale profession.
“The demand for used LCVs skyrocketed in December because the financial downturn and uncertainty noticed operators shopping for used LCVs relatively than locking into long run finance agreements to purchase new autos.
The hole between the value of a brand new van and a used van has additionally reached document ranges with many SMEs unable to justify paying £40-50,000 for a brand new 3.5 tonne van. That is significantly related with specialist autos akin to tippers and dropsides.
“We continue to welcome fleets to our Tuesday LCV auction who are buying good quality used vehicles to avoid being forced to buy eLCVs from OEMS keen to meet their ZEV Mandate targets. Many fleets are still not prepared for an electric journey as their current usage and mileage sits outside the capability of current electric LCVs available,” he added.
Wright estimates the weaker Covid-induced new LCV gross sales in 2022 will go away the market in need of between 80-100,000 three-year outdated used autos in 2025 and in 2026.
“Competition from dealers is forcing up prices, especially for the clean three-year old vehicles with a full-service history which are less readily available in the current market. We are likely to see a buoyant used LCV market in 2025 and into 2026,” he added.
2024 had been a troublesome 12 months for the used LCV market up till August when the market all of the sudden awakened.
“The used LCV market was extremely tough for the first seven months of 2024 and finally lower prices and a slowing economy encouraged more dealers to start refreshing their stock. The used market suddenly sprung into life,” mentioned Wright.
Extra electrical LCVs have already began reaching the auctions in 2025, however the majority are older fashions with a decrease vary and sluggish charging pace and demand has been sluggish. Some ex-utility electrical Vauxhall Vivaros and the Toyota Proace with a bigger battery have bucked the development, whereas sub-£10,000 automobile derived vans such because the Kangoo have discovered consumers.
“The older used electric vans provide value for money for some operators and dealers are willing to give them a chance on their forecourts, but the more expensive vehicles are a much tougher proposition,” mentioned Wright.
