A report just released by the British car auctions association has shown an increase in Used Commercial Vans and other Vans for Sale across the spectrum. The figures show that in January 2011 a sharp increase occurred in used vehicle values. This is thought to be due to the last few months’ weather conditions when much of the country was blanketed in snow.
The figures released by the organisation are certainly good news for the motoring industry as a whole and is also a welcome news to van suppliers. On average the value of a second hand used light commercial van has increased by 3.8% (£155) which also brings the figure back to the same price it was in June 2010.
The general manager of commercial vehicles at the BCA Duncan Ward commented “Demand improved significantly in January following a tough end to the year, although there are still some issues relating to poor stock mix affecting the market. After the general shortage of Light Commercial Vehicles seen throughout 2010, the market has seen a large influx of vans from business failures and liquidations, many in poor condition or with a low specification.”
The general manager also commented on future trends saying “We usually see an upturn in interest and demand in the first three months in any year, but concerns remain that the increase in volume will have a dampening effect on the overall market. Conversions and prices have improved, but perhaps not to the level they might have done. Buyers have remained consistently upbeat and willing to bid on almost everything, while only pushing the barriers on the exceptionally clean, rare or low mileage vehicles.”
On the subject of VAT and other current financial climate aspects Mr Ward commented “As predicted the VAT increase has had little or no effect on the B2B marketplace. However, LCVs offered without VAT are clearly even more attractive to private buyers and trade buyers hoping to retail to a non-VAT registered customer.”