Used van prices in the UK are showing signs of returning to normality, following months of high prices brought on by chip shortages, Covid's home delivery boom and inflation.
Prices have eased back to pre-pandemic levels according to Shoreham Vehicle Auctions (SVA) who has reported its most successful sales month of 2024, with a surge in demand and conversion rates.
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After months of inflated costs, LCV prices are now more affordable, encouraging dealers and businesses to invest in new vehicles. SVA saw conversion rates soar to over 90% in July and August, compared to the typical 50-60% seen earlier in the year.
The market's recovery has bucked the usual summer slowdown, with strong demand pushing up prices on certain models. However, the overall trend is one of price normalisation, with some vehicles now selling for thousands of pounds less than in 2023.
Some vans that were selling in the wholesale market for up to £10,000 a year ago are now selling for as little as £6,000.
The return to more stable pricing is being welcomed by SMEs, who are the primary buyers of used vans. With interest rates falling and the government promising investment in housing, businesses are more confident about their finances and are eager to take advantage of the lower prices.
While the market is showing positive signs, experts caution that challenges remain. The availability of well-equipped LCVs is still limited, with demand outstripping supply for higher-specification models.
Metallic paint vans with a high specification and a full-service history are commanding higher prices than usual due to their limited availability.
“The market is unprecedented in that it normally slows down during the summer. Talking to more than 100 dealers over the past few weeks, they have returned to buying vehicles for stock and to meet demand from a growing number of SMEs looking to take advantage of the fall in prices,” explained Alex Wright, SVA’s MD.
“The used LCV market is as buoyant as it was pre-Covid with vehicles much more affordable. We anticipate higher conversion rates will continue now for the rest of the year as there are many aging vans in the market where replacement cycles have been extended waiting to be replaced. Dealers are also confident that prices are not going to drop any further,” he added.
