BCA have published ‘The Used LCV Market Report 2010’, a new publication aimed at highlighting the critical role LCV’s play in the wealth and prosperity of the UK.
The report examines the UK LCV market and analyses the dynamics and changes in the sector over the past few years, looks at the routes to market and the implications of supply and demand on price, and identifies some of the strategic implications of the recession on the market.
Duncan Ward, BCA’s general manager, commercial vehicles commented “LCV’s are a part of everyday business life and – as such – deserve analysis and scrutiny just as much as other transport sectors. The state of the LCV market is likely to be one of the most accurate barometers for the health of UK business as a whole and economists and policy makers ignore it at their peril. To that end, BCA is delighted to support the publication of this study into the LCV industry, the recession and recovery by Professor Peter Cooke.”
In the report, Cooke underlines the importance of LCV sales volumes in gauging the UK’s recovery from recession. He says “The true role of LCVs in the economy should see the sector given much more prominence. Used LCVs are commonly the preferred mode of business transport for small and medium enterprises (SMEs), as new vehicles are very often beyond their financial reach, while used LCVs serve their purpose exceedingly well. Used LCVs also have a significantly longer ‘business life’ than cars, two or three more businesses using them, whereas cars typically have just one business user before being sold to a private motorist.”
The report identifies the likely key drivers for change in the used LCV market over the coming years. These include carbon footprint and CO2 emissions, balanced against cost and reliability issues; the potential rise of electric LCVs; road pricing and congestion charging; Duty of Care; Fuel strategy; Corporate tax; and climate change as that becomes an increasingly hot political topic.
According to Cooke, used vehicle disposal will become increasingly important, particularly for businesses that wholly own their fleets where optimum disposal can have a significant impact on the total cost of operation. He also sees a future for alternative providers of LCV capacity, particularly with the continued growth in Internet shopping; which is likely to have a significant impact on demand for LCVs.
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