New registrations increased slightly from 13,832 in February 2015 to 13,891 in February 2016. This followed an all-time record of 371,830 units registered throughout 2015.
Used volumes held steady in February, compared with the same month in 2015. Volumes decreased from 10,566 in February 2015 to 10,270 in February 2016, a 2.7% fluctuation, further reinforcing the strength of both markets.
“This is hugely significant in the both the new and used markets. The strength of the economy has allowed SMEs to re-invest in newer LCVs, either in the auction hall or through attractive finance deals on new vans on dealer forecourts,” said Alex Wright, managing director of Shoreham.
He also said that the used market has fully returned to pre-recession levels with LCVs up to six-years-old proving popular with buyers.
Due to the recession, SMEs had started holding onto their LCVs for longer, rather than investing in new vehicles, resulting in a downturn for registrations in 2009 and creating a backlog of older units.
However, February 2016 data indicates this stock has now washed through the market, enabling volumes of used LCVs over six-years-old to fall behind newer units. A larger proportion of LCVs in better condition coupled with healthy demand has kept prices high; the average price of used LCVs sold at auction in February 2016 was £5,072.
“We haven’t seen this type of growth in the new and used markets since the pre-recession years of 2007/08. This has led to the creation of a stable and buoyant used market, with a steady flow of stock in good condition matched by strong demand. It’s clear that steadily rising new registrations is having little impact on used volumes, especially for LCVs between two and six-years-old,” added Wright.