Fleet News

Fleets over-supply used LCV market

Large volumes of light commercial vehicles are being de-fleeted by rental and leasing firms as thousands of three and four-year contracts agreed with their fleet customers come to an end.

This is producing a surge of late-year vans arriving on the used market.

“With 2007 being a record breaking year for new vehicle registrations, fleets have plenty of additional used vans to dispose of,” said George Alexander, chief commercial vehicle editor at EurotaxGlass’s.

The influx of used LCVs arriving at auction sites could be one of the biggest opportunities for retailers in a decade but could also mean it will be difficult to attain highest resale values.

“This could prove to be a major opportunity for retailers to acquire stock at attractive prices,” said Mr Alexander.

The large numbers of de-fleeted LCVs arriving at auction follows 30 months of continual shortages of light used commercials, which has led to higher than normal prices being paid by dealers keen to restock.

Concerns about the UK economy towards the close of last year have also contributed to the greater availability of used vans, says Mr Alexander.

“It is not surprising that businesses do not wish to carry unnecessary capacity within their fleets at a time of economic uncertainty.”
 

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