The UK’s used van market will recover faster than its car equivalent following the COVID-19 coronavirus lockdown as businesses turn to commercial vehicles to re-start their operations, Aston Barclay has predicted.
The remarketing specialist saw the CV sector deliver record Q1 values during Q1, rising by 7.6% (£350) from £4,573 in Q4 2019 to £4,923 until the Covid-19 lockdown closed the market in March.
And Geoff Flood, Aston Barclay’s commercial vehicle sales manager, believes that the momentum will pick up quickly once again when the Government’s current COVID-19 lockdown restrictions are eased.
“We believe the used van market will reset itself quickly once dealers and auctions are back open as LCVs will be at the forefront of getting the country back on its feet,” said Flood.
“We should remember that LCVs have been working hard during the lockdown, some working double shifts and covering thousands of miles each week.
“Operators will be looking to replace some of these vehicles, while a supply of new vans will be delayed as OEMs get their production facilities up and running which may help used van prices.”
He added: “Reports are that many leasing contracts have been extended so we should see an additional surge of ex-fleet stock coming to auction a little later than expected in 2020 which will also help fuel used market demand.”
AM understands that OEMs are expecting their fleet operations to get back on-track as lockdown measures are eased, as the widespread use of remote vehicle handovers make it easier to distribute new vehicles in contactless fashion.
The trend is sure to extend to CVs, prompting a flow of vans into remarketing centres across the UK.
Commenting on the record valuation trends it had seen prior to the implementation of the UK Government’s lockdown measures in March, Aston Barclay said that positive price movements had been bolstered by a fall in average age from 70 months to 64 months in the period, as average mileage remained consistent at 105,000 miles.
Double-cab pick-up prices also rose during Q1, it said.
Values rose by 5.6% (£524) on average, from £9,233 in Q4 19 to £9,757 in Q1, as a shortage of stock helped to “keep prices healthy”.
Average age increased slightly from 65 to 67 months while mileage remained constant at 70,000 miles.