Used LCV buyers are returning to the market on the back of falling prices, reports Shoreham Vehicle Auctions (SVA).
The auction specialist recorded its most successful month of LCV sales in 2024 as prices dropped back to pre-Covid levels during late July and early August. Conversion rates at SVA stood at 90%, compared to figures as low as 50-60% so far this year.
The strong demand and sales have bucked the annual summer slowdown and have been fuelled by the big price drops. Some LCVs that were selling in the wholesale market for up to £10,000 a year ago are now going for as little as £6,000 due to the large volumes of base-spec white vehicles.
On the flip side, demand and prices are high for metallic LCVs with top specification and full-service history, due to their limited availability.
Market demand is being led by SME buyers returning to the market as used van prices and interest rates fall while new vehicle prices and lease rates remain high.
Alex Wright, SVA’s MD, said market conditions were unprecedented compared to the usual seasonal slowdown.
“Talking to more than 100 dealers over the past few weeks, they have returned to buying vehicles for stock and to meet demand from a growing number of SMEs looking to take advantage of the fall in prices,” he explained.
“The used LCV market is as buoyant as it was pre-Covid with vehicles much more affordable.”
Conversion rates are likely to stay high for the rest of the year, according to Wright, as there are many aging vans in the market from where replacement cycles have been extended during Covid and the subsequent supply issues.
“Dealers are also confident that prices are not going to drop any further,” he added.
