Used van dealers are turning away from buying battery electric vans (BEVs) at auction due to the difficulty of selling them on to retail customers, according to research from Cap HPI.
Used LCV values fell by 1.2% overall in August at three years, 60,000 miles. However, values for BEV LCVs dropped by 4% for compact vans and 14.8% for large vans as trade buyers focused on easier-to-sell diesel models, the automotive data company said.
Ken Brown, LCV valuations editor at Cap HPI, said: “BEV LCV values remain under pressure as inadequate charging infrastructure, range anxiety, high vehicle purchase prices, and the rising cost of electricity are all playing their part in the relatively low retail demand.
“It is no surprise that dealers prefer to invest in stock they can turn over quickly. Faced with the prospect of having their money tied up for longer periods in more expensive BEVs, trade buyers are voting with their feet, putting extreme pressure on market prices.”
Cap HPI found that despite the downturn in new LCV sales during the height of the Covid-19 pandemic there was no current evidence of a shortage in supply to the used market.
The research indicated that medium and large van prices have reached a sustainable level, although older large van prices remain under pressure, while demand for 4×4 pick-ups, particularly lifestyle models, remains strong. The demand for city and compact vans, however, which was strong earlier in the year, has weakened considerably over the past three months, said cap hpi.
“While there is plenty of stock to go around, it is worth noting that vehicles entering the used market are generally older, they’ve covered higher mileages and are exhibiting correspondingly more damage,” said Brown.
“These are issues that are likely to persist for a long while, at least until new vehicle supply and fleet vehicle replacement cycles are back on track.”
