Economic and EV-related factors have driven a strong December and January for the used LCV market, according to Shoreham Vehicle Auctions (SVA).
It said reduced economic confidence had forced companies to turn to used vehicles rather than make long-term commitments to new LCVs.
In addition, it said fleets were buying used in order to avoid pressure from some manufacturers to order one or more EVs for every ten new diesel vehicles.
SVA MD Alex Wright said it had been the strongest December and January he had seen in a 35-year auction career, with prices remaining strong across December, rather than falling back as usually seen, and continuing to be strong in January, with conversions averaging in the mid to high 90s.
He said: “The demand for used LCVs skyrocketed in December as the economic downturn and uncertainty saw operators buying used LCVs rather than locking into long term finance agreements to buy new vehicles.
“The gap between the price of a new van and a used van has also reached record levels with many SMEs unable to justify paying £40-50,000 for a new 3.5t van. This is particularly relevant with specialist vehicles such as 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.”
Wright added that the used LCV market was facing a stock shortfall caused by a Covid-induced new market drop in 2022.
He said: “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.”
