Used LCV prices at Aston Barclay rose by 11% (£426) in January to £8,210, as the market bounced back in 2023.
The strong demand for wholesale vehicles was led both by dealers looking to restock after running down forecourts in December, and by SMEs seeking 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 from 102,000 to 108,000 miles between December 2022 and January 2023.
Demand is also likely to be maintained across the year – setting the market at its ‘new normal’ until 2024 – on the back of continued restricted production volumes. The ongoing shortages mean many new vans ordered now won’t be delivered for at least 12 months.
As a result, demand for used LCVs continues to outstrip supply in the used LCV market, despite higher energy prices and rising inflation.
The stable start to the year follows 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.
Varied buyer demand shown in monthly desirability index
Aston Barclay’s monthly desirability index reinforces that there are several different trends taking place in the used LCV market.
Medium and large panel vans such as the Ford Transit Custom, VW Crafter and VW Transporter came out top in January and February.
Four-wheel-drive pickups 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 pickups are being boosted by seasonal demand,” said Healey.
Aston Barclay’s monthly desirability index is based on 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.
