Surge in Used Van Demand at Auctions
Demand for used vans at auctions has seen a significant surge as buyers switch from purchasing new vehicles, driven by economic uncertainty and financial pressures. Shoreham Auctions, based in Lancing, West Sussex, reported a substantial increase in demand for used Light Commercial Vehicles (LCVs) in December and January, a trend attributed to reduced economic confidence and the widening price gap between new and used vans.
The market for new vans has experienced a downturn, with the Society of Motor Manufacturers & Traders reporting a 20% decline in new van sales due to “weakened business confidence”. Shoreham Auctions’ Managing Director, Alex Wright, noted that the economic slowdown has compelled companies to opt for used vehicles over committing to long-term finance agreements for new vehicles. Additionally, some fleets are purchasing used LCVs at auctions to avoid the pressure from Original Equipment Manufacturers (OEMs) to order electric vehicles (EVs) alongside their diesel vehicle purchases.
Wright described December’s demand for used LCVs as the strongest he has witnessed in his 35-year auction career. “The demand for used LCVs skyrocketed in December as the economic downturn and uncertainty saw operators buying used LCVs rather than locking into long-term finance agreements to buy new vehicles,” he explained. The price difference between new and used vans has reached record levels, with many Small to Medium-sized Enterprises (SMEs) finding it unjustifiable to spend £40-50,000 on a new 3.5-tonne van, particularly for specialist vehicles like tippers and dropsides.
Fleets continue to utilize Shoreham’s Tuesday LCV auctions to acquire high-quality used vehicles, thereby avoiding the obligation to purchase electric LCVs (eLCVs) from OEMs striving to meet their Zero Emission Vehicle (ZEV) Mandate targets. Many of these fleets are not yet prepared to transition to electric vehicles due to their current usage and mileage exceeding the capabilities of available electric LCVs.
Wright forecasts a buoyant used LCV market in 2025 and into 2026, driven by the anticipated shortage of 80-100,000 three-year-old used vehicles resulting from weaker new LCV sales in 2022 due to Covid-19. “Competition from dealers is forcing up prices, especially for clean three-year-old vehicles with a full-service history, which are less readily available in the current market,” he added.
The used LCV market experienced a challenging period for the first seven months of 2024, but lower prices and the slowing economy encouraged dealers to refresh their stock, revitalizing the market. More electric LCVs have begun appearing at auctions in 2025, although demand has been slow for the older models with limited range and slow charging speeds. Exceptions include ex-utility electric Vauxhall Vivaros and Toyota Proace with larger batteries, as well as sub-£10,000 car-derived vans like the Kangoo.
“The older used electric vans provide value for money for some operators, and dealers are willing to give them a chance on their forecourts. However, the more expensive vehicles are a much tougher proposition,” Wright observed.
