Fleet News

Used Market: Best quarter for 15 years

He said: ‘The figures speak for themselves, with all manner of light commercial vehicles achieving well over guide price – thousands of pounds in some instances, so the real question is why?

‘The incredibly strong market has left buyers with something of a dilemma. Prices of nearly new vehicles at auction are so close to list prices of new commercial vehicles, especially with many manufacturers offering substantial discounts. Vendors who are close to the market know their vehicles will sell well above guide price and they are safe in the knowledge that to ensure forecourts don’t stand empty, the vehicles will continue to sell.

‘Some retailers may be waiting for a dip in the market before they purchase vehicles but they can’t afford to have empty forecourts while they wait for the market to change.’

Manheim’s advice to buyers is to make informed purchase decisions to ensure vehicles do not sit on forecourts for any length of time that may affect value. Wright added: ‘With the market as strong as it is now, almost all vehicles are in short supply and therefore will sell well. The more unusual vehicles, such as dropsides and Lutons, will not depreciate because of their rarity and therefore are good forecourt fillers.’

So why is the market so strong? Wright believes the strength of the market is a direct reflection on the strength of the self-employed building industry, partly thanks to more homeowners investing in extensions and home repairs rather than moving. Busy small to medium sized building and building related companies (such as plumbers, electricians) means an increased need for used vans and good cash flow leads to more regular vehicle upgrades.

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