Used commercial vehicle demand is set to remain strong in 2018, according to experts at Cap HPI, following a fall in new registrations in 2017 for the first time since 2011-12.
In the final quarter of 2017, demand for good quality used vehicles remained consistent with special sales taking place in December. Cap HPI predicts the trend will continue in 2018, as the logistics sector continues to boom.
Conversely, the new sector is not expected to see any growth, also continuing the trend in 2017 that saw registrations drop for the first time since the 2011-12 period. The 362,149 vehicles registered in 2017 represent declines of 2.6% and 3.6% compared to 2015 and 2016, respectively.
Daily rental volume increased in 2017 by 2.4% when compared to 2016 and represented 15.7% of the total registrations compared to 14.8% in 2016.
Steve Botfield, senior editor commercial vehicles and motorcycles at Cap HPI, said: “With historic new registrations still on the increase three or four years ago, the volumes expected to reach the market in 2018 will be higher than we have seen in recent years. However, with increasing vehicle reliability, we may see vehicles being kept for longer and reduce demand in the market.
“It is unlikely that in the foreseeable future we will attain the heights of the registrations we saw in 2015 and 2016. With the current economic climate and exchange rates vehicles that would have been destined for our shores will either be diverted to other markets or fleets will have to face an increase in vehicle purchase prices.”