Used LCV market settles down as ex-fleet and local authority vans generate the highest prices

Ex-fleet vans between three and five years of age continue to have a huge following as stock levels remain restricted which is contributing to continued high prices. The VW Transport and Ford Transit Custom with a good specification and in the right colour are particularly sought after by dealers for their SME customers.

Nearly new vans coming to auction on a 21-plate are facing the challenge of prices being close or higher than their cost new price. Therefore, buyers are either buying a van to fulfil a customer order or they are struggling to come to terms with paying retail prices for sub-12-month-old vans to add to their forecourts.

The supply of ex-local authority Euro V stock reaching the used market in response to the London, and more recently the Portsmouth Low Emission Zone restrictions continues to rise. Typically, seven-to eight-years-old, they are generally in fantastic condition and with a full servicing history which attracts CAP Clean plus prices.

Euro V vans continue to find new homes with local businesses that work in areas of the country that are unaffected by Emission Zone regulations. If a tradesman is venturing into a Low Emission Zone, he is simply building the charge into his prices. This follows predictions from some areas of the industry two years ago that Euro V used vans would be difficult to sell.

However, the market is becoming more sensitive to condition, particularly at the cheaper end of the market. Anything that is approaching the end of its life in poor condition and could incur large repair costs is struggling to find bids.

Bespoke LCVs such as double cab tippers are also blowing hot and cold. One week they will generate a number of bids and the following week they struggle to reach their reserve price. Demand is also very specification sensitive.

“Used LCV prices are at the highest they have ever been but are now the new normal and have been at a consistent level for the past 18 months. Demand, bids and conversion rates remain high with the ex-fleet and well maintained ex-local authority in the buyer’s sweet spot,” explained Tim Spencer, SVA’s commercial vehicle sales manager.

“With regard to some used vans selling for retail prices and higher. Buyers are only prepared to invest in this stock where they have a guaranteed buyer in place. They believe it’s too risky to buy sub-12-month-old LCVs at retail prices just for stock as the market could change and they risk catching a cold if the market suddenly changes.”