Typically, when a contract-hired vehicle comes to the end of its first life, the lease company will inspect the van and recharge the customer for any damage noted over and above certain guidelines. But, with the pressure being on to achieve the highest return at the lowest cost, some may be tempted to offer the vehicle for resale ‘as is’, accepting that the sum realised will be lower than if refurbishment had been carried out. But, to the trade buyer, there is a cost, not just for repairs, but for the time incurred when the vehicle is unavailable for sale.

Auction companies see vendors take different approaches depending on the vehicle’s age and other factors. As Victoria Slaney, regional LCV manager at Aston Barclay explained, “Whether to refurbish used vehicles before selling or send them straight to auction really comes down to the type of stock. For older, high-mileage vehicles, spending money on refurbishment doesn’t usually add much value. Buyers in this market expect some wear and tear and are prepared to take on any necessary work themselves, so cleaning them up won’t make a big difference in price”. 

But, for newer vehicles, a change in tactic can reap dividends, says  Slaney. “Buyers looking at these expect a higher standard, and a bit of refurbishment can go a long way. Aston Barclay data shows that refurbishing LCVs adds on average, an extra £316 profit per unit compared to as little as a £92 investment, more often than not the returns are worth the additional input to increase the grade.” 

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Alex Wright, managing director of Shoreham Vehicle Auctions suggests that the best investment is in vehicles fitting a stock profile that is in demand. “In 2025 the hotspot for the market is three to four-year old LCVs in good condition and with a full service history. This stock is still quite scarce and so is in high demand and making strong money. If you are disposing of this type of stock at auction then you can afford to refurbish the vehicle before it goes under the hammer simply because you know you will get your money back and more.” 

Even colour should be taken into account in certain circumstances, as Wright explains. “If a vendor is selling a non-white, particularly something in a metallic colour such as silver we would recommend getting paintwork tidied up. Don’t forget higher spec vans like VW Transporters in metallic colours are often bought to be repurposed into a camper van so offering the vehicle in a good condition should generate more bids and a healthy sale price.”

Although a vehicle with damage will have a lower hammer price at auction, the cost of the repairs to put the van in a condition where it is ready for retail sale is not the only factor that influences a buyer. Many dealer groups have a 60 or 90-day stocking policy, after which the van has to be disposed of, usually back into the trade with a potential financial loss. 

Richard James, head of used commercial vehicles at Motus Commercials highlights this challenge. “The clock starts ticking as soon as any invoice is passed to admin for payment. By the time that has happened, payment acknowledged by the vendor and delivery booked and actioned, it is rare to see a vehicle that isn’t already at least 14 days old. At that point, the pressure to market the vehicle is huge and where vans requiring paintwork cause us a huge headache as it is, then it’s all about getting images online. If the vehicle condition renders this impossible, experience shows that the phone doesn’t ring and the emails don’t ping.” He added: “The length of time and effort it takes for us to either get vans through our own paint shops or use third parties can be excruciating and more often than not means I have to turn my back on vans that should be good pieces of stock.”

Concerns about the time spent getting vans prepared after purchase are echoed by Moe Ali, brand director Ford Pro at Allen Motor Group. “Time to market is critical and dealerships still make it hard work to do this with vans in particular. If they came off de-fleeted and prepped to a retail standard you could pay more for them in effect. I would love them to come prepped and retail-ready!”

Time-conscious buyers

The valuation guides observe and monitor the performance of vehicles at auction on a daily basis, not just relying on data but physically checking the condition as they enter the auction hall. Andy Picton, specialist residual value analyst and team leader at Glass’s says that buyer behaviour has changed in recent times. “During Covid, pretty much any vehicle regardless of condition was selling at the first time of asking. This has changed and many traders would now rather pay more for something that is straight and clean and with two keys and history than buy a damaged/unprepared vehicle and then pay to have it put right. It’s the additional time the vehicle would spend being refurbished that is the killer.” He added: “The used market is quite volatile, with a lot of ‘samey’ stock available. This has resulted in values depreciating steadily over the last 12 months, so being left high and dry is a big concern for dealers/traders now.” 

Picton suggests, however, that there can be a profit opportunity for smaller dealers who are equipped to quickly refurbish a van. “If a trader has his own bodyshop, an unprepared van is less of an issue and could return a tidy profit. But with parts and labour becoming more and more expensive and with many parts on delayed delivery, many dealers/traders are put off by the hassle.” 

Dionne Hanlon, senior editor, commercial vehicles and motorcycles at cap-hpi, also sees a potential where the target customer may not wish to pay extra for a van that is in pristine condition. 

“Prepping at defleet seems like the obvious choice but it all depends on who you are aiming to sell the vehicle to. Minor cosmetic damage would be acceptable to most one man bands if the vehicle is for their own use. Do they need to be prepped to retail standards? Probably not if you’re just looking for a quick turnaround, it’s generally accepted that a van will have a bit of damage. But if you’re chasing the big bucks, even prepping to a retail standard doesn’t mean that you’ll always get it. Knowing your audience is just as important as the vehicle.”

The final word goes to Motus’s James. “My message to vendors is that if you have the capability to cosmetically repair prior to selling (to a good standard as there
are plenty who try to do it on the cheap and don’t achieve this!) then the rewards will be greater albeit a little further down the line.”

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