Fleet News

LPG vans commanding auction premium

LIQUEFIED petroleum gas-powered (LPG) vans are getting massive premiums over diesel at auction in the south-east, due to the influence of congestion charging, Manheim Auctions has claimed.

According to the firm, late plate, low mileage LPG vans are making up to 20% more than diesel counterparts with petrol models, which can be converted to LPG, making the same as diesel for the first time ever.

Alex Wright, group commercial vehicle manager at Manheim, said: 'We are seeing great demand for LPG vehicles, especially the new Transit, at our Colchester site. Due to demand, there is currently a massive shortage of alternative fuel vehicles at auction.

'Buyers in the London area are willing to purchase nearly- new LPG vans at the same price as new vehicles and are welcoming the advent of alternative fuel vehicles.'

He added that at the older end of the market, diesel was still the dominant force as buyers trust the durability of the engines more than LPG units. It would take time for buyers of older vans to accept the alternative fuel.

Wright said: 'It will be some time before confidence about LPG builds, especially among the key market of the self-employed. This sector of the market will continue to buy diesels because of the well-documented benefits.'

However, congestion charging has no marked effect on the residuals of LPG-powered cars, according to CAP and Glass's.

Van fuel price comparison
Year/plate Model Fuel Mileage Price
02/52 Ford Transit 260 SWB H/Roof LPG 365 £8,500
02/52 Ford Transit 260 SWB H/Roof 75 Diesel 400 £7,950
02/52 Ford Transit 280 LWB H/Roof LPG 6,000 £8,950
02/52 Ford Transit 280 LWB H/Roof 90 Diesel 10,000 £7,650

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee