The used LCV market is showing signs of change caused by Brexit and with the introduction of the London Ultra Low Emission Zone (ULEZ), according to Shoreham Vehicle Auctions (SVA).
While the general level of prices and demand remains high, businesses seem to be more cautious and are buying cheaper vans rather than taking out a loan or using their own cash to buy a more expensive van.
This caution is reflecting in buying patterns of dealers with the specialist higher cost stock such as tippers and models currently in high supply such as Ford Transit Customs and VW Caddys in demand one week and tough to sell the next.
Those operators who work in and around London and affected by the new ULEZ are having to invest more money in Euro 6 vans.
“They are future-proofing their fleets prior to the April ULEZ launch to avoid hefty daily fines for entering the Capital,” says SVA.
Meanwhile companies whose vehicles don’t visit London are investing in Euro 5 vans as they provide excellent value as major rental fleets continue their de-fleet process.
SVA’s commercial vehicle sales manager Tim Spencer said: “Many smaller companies who buy the majority of used vans are currently investing £4-8,000 in a used van rather than £10-15,000 with Brexit still hanging over the economy.
“Used LCV prices haven’t fallen dramatically and there is no sign the market is going to see a major downturn, but we are aware of a definite change in buying habits and confidence caused by Brexit and ULEZ.”
A recent batch of two-year old tippers struggled to sell at Shoreham one week and made above their £15,000 book value the next.
The same with a batch of ex-utility 63 and 65-plate VW Caddys, while a handful of 10-year old ex-council and ex-fire service Ford Transits made 50% above book based on their excellent condition and full-service history.