Economic Pressures Drive Fleets to Used Vans
Economic headwinds are prompting some fleets to prioritize used vehicles over new ones, avoiding long-term finance agreements, according to Shoreham Vehicle Auctions (SVA). The company’s recent report highlights a strengthening used light commercial vehicle (LCV) market, specifically in December and January.
SVA observed robust used LCV sales throughout December, a period when prices typically soften. January also saw strong prices, with conversion rates averaging in the mid to high 90s. Alex Wright, SVA’s Managing Director, noted that some fleets are actively purchasing used LCVs via auction to avoid pressure from Original Equipment Manufacturers (OEMs) to order electric vehicles (EVs).
This trend contributed to SVA’s strongest December and January results in Wright’s 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…” – Alex Wright, SVA MD
Wright explained that the price difference between new and used vans has reached record levels, making it difficult for many small and medium-sized enterprises (SMEs) to justify spending £40,000-£50,000 on a new 3.5-tonne van, especially for specialist vehicles like tippers and dropsides.
“We continue to welcome fleets to our Tuesday LCV auction who are buying good quality used vehicles to avoid being forced to buy eLCVs from OEMS keen to meet their ZEV mandate targets. Many fleets are still not prepared for an electric journey as their current usage and mileage sits outside the capability of current electric LCVs available.” – Alex Wright, SVA MD
Supply Challenges and Market Predictions
Wright anticipates a shortage of approximately 80,000 to 100,000 three-year-old used vehicles by 2025 and 2026, stemming from weaker new LCV sales in 2022 due to the COVID-19 pandemic. Strong competition from dealers is driving up prices, particularly for well-maintained, three-year-old vehicles with full service histories, which are increasingly scarce.
“We are likely to see a buoyant used LCV market in 2025 and into 2026.” – Alex Wright, SVA MD
He also noted that the used LCV market experienced challenges in the first seven months of 2024 but that lower prices and the slowing economy eventually encouraged dealers to refresh their stock, leading to a surge in the used market.
Electric LCVs Enter the Auction Market
While more electric LCVs have begun appearing at auctions in 2025, most are older models with shorter ranges and slower charging capabilities, resulting in slow demand. However, some electric Vauxhall Vivaros and Toyota Proace models with larger batteries have performed well, along with 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, but the more expensive vehicles are a much tougher proposition.” – Alex Wright, SVA MD
