Fleet News

Used LCVs: Can recent growth in pick-up sector continue?

The pick-up sector has enjoyed relative volume growth in recent years and has been a consistent performer at auction, helped by the lenient benefit-in-kind taxation regime.

But with pick-ups now subject to similar BIK rules to cars, has the bubble burst for fleet sellers?

Duncan Ward says: “Double Cab pick-ups remain a strong sector in the marketplace, with new models creating both interest and demand in the used sector.

"In terms of volume, the most growth is seen in the high-spec ‘lightly-worked’ sector, as volumes from the utility market have fallen.

“The market differentiates strongly between working and recreational examples and high spec vehicles that have not been used ‘commercially’ are most in demand.

Damage is costly in this sector and it is recommended
that owners should use manufacturer-specified linings to protect the load bay.

“From the fleet owners’ viewpoint, there are some key factors that come into play when remarketing pick-ups. Double cabs will always be desirable because they are simply more
useable as a family vehicle.

"Even considering that most pick-ups will be bought to put back to work, many will go to self-employed business people and may spend the weekends ferrying the family about.

"That said, singlecabs have a rarity value that can see good examples outstrip guide prices.

“Specification is very important. The basic models simply do not attract as many buyers, as the next owner prefers leather trim, air con, alloy wheels, metallic paint, running boards and CD player, for example.

"Colour will also affect desirability and price.

"A pick-up in white or yellow looks utilitarian – the same
vehicle in metallic red, black or blue is a more attractive  proposition for the used buyer and could make significantly more.”

 

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