REMARKETING: Will Clean Air Zones leave older van values gasping for breath?

Date: Wednesday, November 28, 2018   |   Author: Tim Cattlin

 

Ulez -map -cc -boundary

The boundary for London’s ULEZ, which becomes active from April 2019

Stuart Pearson, chief operating officer UK remarketing at auction firm BCA, also remains optimistic: “At this stage no-one can predict exactly how the market will react to the expansion of low-emission zones (LEZs). It is inevitable there will be some pricing sensitivities – however, BCA serves a nationwide market and with the ever-growing demand from small to medium-sized businesses for good quality used vehicles, there should be more than sufficient demand to maintain interest for older Euro3/4/5 LCVs from any buyers not affected by potential extensions of ULEZ zones.”

On the introduction of the London LEZ for vans in 2012 there was a trend for older used vehicles to be disposed of in areas away from the south east of England where the emissions would be less likely to affect the sale price.

With the trade more confident at buying unseen via online auctions (and, indeed, retail customers committing to a purchase from a dealer from a description and photos), our experts generally think the location of a vehicle is less critical. Stressing the benefits of online bidding, Pearson says: “BCA Live Online allows in-lane and remote bidders to compete for the same vehicles, generating maximum buying power and meaning the vehicle’s precise location when sold is not a significant issue”.

Cap HPI’s Botfield adds: “With the growth in online platforms and websites the location of vehicles today does not preclude any trader from purchasing anywhere in the country. However, the savvy trader will know what stock he needs to hold based on his geographical location and buyer base.”

Meanwhile, Picton says: “Although there is no immediate pressure on vendors to push newer Euro6 used vehicles towards those areas where only the cleanest stock is allowed without penalty, it would be sensible to assume that as more CAZ/ULEZ come into force, so the cleanest vehicles will be sold into and around those areas. That said, older and dirtier vehicles can still be sold into other parts of the country without suffering a penalty, so RVs are unlikely to be affected in the immediate future”.

Manheim’s Davis suggests the roll-out of CAZs means some operators may well be just putting off the inevitable.

“In 2020 Birmingham, Southampton, Nottingham, Leeds and Derby aim to roll out their CAZs – or ULEZs – so it’s highly likely only Euro6 vans… will operate in those cities without a penalty,” he says. “Be under no illusion: older, high-emitting vans and trucks and cars – all diesel – are being legislated out of our cities. Next it will be towns and entire regions. And it will happen relatively quickly.”

Are used alternatively fuelled vehicles perfect future-proofing?

Steve Botfield,  CAP HPI
“With the government’s launch of its Road to Zero document the push is into alternative methods of propulsion away from the internal combustion engine (ICE). However, a number of manufacturers are going down the plug-in hybrid (PHEV) route to overcome some of the factors that limit the use of EVs, which are range and performance. Therefore, the demand for EVs and PHEVs will develop based upon the initial operator’s use, and this, of course, will be no different from that of the subsequent user. However, the same hurdles as the first user – of range, performance, cost, choice and charging infrastructure – must be accepted by the second and third buyer because if the figures do not stack up what incentive is there to change?”  

Andy Picton, Glass’s
“The used market should be healthy as there are many who believe the buyer of a used van travelling short distances each day is ideally suited to electric LCVs. But with the current lack of choice, poor infrastructure (outside of major towns and cities) and a lot of conflicting information, many travel back down the tried and tested route of an ICE vehicle as their weapon of choice. But we’re starting to see traders who only buy and sell alternatively fuelled vehicles, while others in and around London only stock the latest Euro6 vehicles. Others will follow and hopefully the word will spread”.



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