Auctioneer sees fast action in LCV market

Used LCVs at SVA were sold right up to Xmas with prices remaining strong across December – compared to the usual seasonal decline from the middle of the month – and prices have stayed strong in January with conversions averaging in the mid to high 90s.

The economic slowdown has forced companies to turn to used vehicles rather than sign up to long-term finance agreements for new vehicles, as reflected by new LCV sales, which fell 21% year-on-year in January.

But some fleets also continue to buy used LCVs at auction to avoid increasing pressure from OEMs to order one or more EVs for every 10 new diesel vehicles they order to aid compliance with the UK’s ZEV mandate rules.

SVA managing director Alex Wright said this was a key factor in the strongest December and January he has experienced in his 35-year auction career.

He said: “The demand for used LCVs skyrocketed in December as the economic downturn and uncertainty saw operators buying used LCVs rather than locking into long-term finance agreements to buy new vehicles. The gap between the price of a new van and a used van has also reached record levels with many SMEs unable to justify paying £40-50,000 for a new 3.5-tonne van. This is particularly relevant with specialist vehicles such as tippers and dropsides.”

He added: “We continue to welcome fleets to our Tuesday LCV auction who are buying good-quality used vehicles to avoid being forced to buy eLCVs from OEMS keen to meet their ZEV mandate targets. Many fleets are still not prepared for an electric journey as their current usage and mileage sits outside the capability of current electric LCVs available.”

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