The UK’s used van market is to see price hikes on the back of the semiconductor shortages that are hitting the new van sector.
The global automotive industry has been hit by supplies of semiconductors since the start of the year and Ford has now said that its Transit van plant will close until 13 June as a result.
Aston Barclay said the Ford shutdown will fuel the continued challenge that the market faces of demand outpacing supply of used vans – an issue that Cox has said the used car sector is also suffering with.
In the used car sector, it’s led to values surging and Aston Barclay said that LCV prices are also rising to record levels.
Five Aston Barclay LCV auctions at Leeds, Donington and Westbury have been held since dealer showrooms re-opened on 12 April and conversion rates of between 92% and 100% have been experienced, with prices outpacing the used value guides.
Demand for new stock has been high with Aston Barclay welcoming back physical buyers to the auction halls for the first time for over 12 months. Roughly 50-60 physical buyers have attended each sale with double that number continuing to buy online.
“Demand for every age, mileage, make and model of light commercial vehicle has been strong over the past two weeks,” said Geoff Flood, Aston Barclay’s national light commercial vehicle manager. “You can ignore the used value guides as vehicles are making what dealers are prepared to pay to secure the van.
“Some vans have gone under the hammer for two to three times reserve and this trend will continue until such time as we see factories re-open and used supplies improving,” he continued.
Two highlights from the Aston Barclay auctions were a 55-plate Ford Transit Custom that made £1,900 despite being valued at £600 and a 17-year-old Toyota van with 22,000 miles on the clock that booked at £1,900 but made £6,250.