Demand for used vans is expected to increase in the coming months as fleets look to replace tired vehicles, according to Aston Barclay.
The remarketing company said used van prices peaked in Q1, before the Coronavirus lockdown started.
“We believe the used van market will reset itself quickly once dealers and auctions are back open as LCVs will be at the forefront of getting the country back on its feet,” explained Geoff Flood, Aston Barclay’s commercial vehicle sales manager.
He explained that LCVs have been working hard during the lockdown, some working double shifts and covering thousands of miles each week.
“Operators will be looking to replace some of these vehicles, while a supply of new vans will be delayed as OEMs get their production facilities up and running which may help used van prices.
“Reports are that many leasing contracts have been extended so we should see an additional surge of ex-fleet stock coming to auction a little later than expected in 2020 which will also help fuel used market demand,” Flood added.
Van prices rose by 7.6% (£350) from £4,573 in Q4 2019 to £4,923 in Q1 2020 until the Covid-19 lockdown closed the market in late March.
This was aided by a fall in average age from 70 months in Q4 2019 to 64 months in Q1 2020. Average mileage remained consistent at 105,000 miles.
Double-cab pick-up prices also rose by 5.6% (£524) from £9,233 in Q4 19 to £9,757 in Q1. A shortage of stock remains in this sector which is helping keep prices healthy.
Average age increased slightly from 65 to 67 months while mileage remained constant at 70,000 miles, which reinforces that the market has found its optimum replacement cycle.