Aston Barclay believes the used LCV market is now set at its “new normal” until 2024 as restricted production volumes mean many new vans ordered now won’t be delivered for at least 12 months.
Used LCV prices rose by 11% (£426) in January, to £8,210, as the market “bounced back” in 2023.
January’s wholesale demand was up as many dealers decided to run down stock in December and as more SMEs looked to buy an additional or replacement van for their business.
The average age of used LCVs at auction rose from 68 to 70 months and jumped from 102,000 to 108,000 between December 2022 and January 2023.
Demand for used LCVs continues to outstrip supply in the used LCV market, however.
“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.
The used LCV market continues to see a range of different used vehicles appear in Aston Barclay’s monthly desirability index. In January and February medium and large panel vans such as the Ford Transit Custom, VW Crafter and VW Transporter were the most desirable.
Four-wheel drive pick-ups 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 pick-ups are being boosted by seasonal demand,” said Healey.
Aston Barclay’s monthly desirability index takes into consideration 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.
Van registrations are predicted to grow by 13.9% in 2023 after starting the new year with their first month of growth since the September numberplate change.
Society of Motor Manufacturers and Traders (SMMT) forecasts said that an easing supply chain issues would help propel the light commercial vehicle (LCV) sector’s recovery after January delivered a 25.8% uplift in registrations to 22,098 units.
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