Used LCV prices rose by 11% (£426) in January to £8,210 as the market bounced back in 2023.
January’s wholesale demand was up as many dealers decided to run down stock in December and as more SMEs looked to buy an additional or replacement van for their business.
Bid levels in the hall and online were both up and prices increased despite average age and mileage rising from 68 to 70 months, and mileage from 102,000 to 108,000 miles between December 2022 and January 2023.
Aston Barclay believes the used LCV market is now set at its ‘new normal’ until 2024 as restricted production volumes mean many new vans ordered now won’t be delivered for at least 12 months.
Despite higher energy prices and rising inflation demand for used LCVs continues to outstrip supply in the used LCV market which is contributing to a stable LCV sector.
This followed a slow-down of the used LCV market in 2022 with more damaged and lower grade stock passing through auction following ongoing replacement cycles being extended.
“Despite the rising cost of living and a weaker economy, SMEs are still replacing or growing their fleets, just in smaller numbers than in previous years,” said Danny Healey, Aston Barclay’s head of LCV development.
“The restricted supply of new LCVs continues to influence the used market with leasing companies extending customer contracts and rental suppliers retaining their vehicles for longer. Demand continues to outstrip supply,” he added.
The used LCV market continues to see a range of different used vehicles appear in Aston Barclay’s monthly desirability index. In January and February medium and large panel vans such as the Ford Transit Custom, VW Crafter and VW Transporter were the most desirable.
Four-wheel drive pick-ups remain in high demand with the Toyota HiLux and Ford Ranger featuring in January’s desirability top 10 and the VW Amarok, Mercedes X Class, and Toyota HiLux in February’s list.
“The desirability index is being influenced by what stock dealers are short of following a busy end to 2022 and a fast start to 2023. Four-wheel drive pick-ups are being boosted by seasonal demand,” said Healey. Aston Barclay’s monthly desirability index takes into consideration three key metrics: web views prior to sale, number of physical and online bids per sale, and the sale price achieved as a percentage of CAP average.
Read More: ‘Young drivers better off leasing their first car than buying’ – Leasing.com