Used van shortage occurring

A slump in the sale of new vans three-years ago is starting to impact the availability of used vans today, according to a motoring auctioneering group.

British Car Auctioneers (BCA) said that the slow-down of sales, linked to the recession and seen in the second half of 2008, means that there are fewer vehicles coming back to the used market now.

Those that do are often older, with higher mileage and are in poorer condition than expected; all factors that may make long term van hire a more attractive option than buying a second-hand vehicle.

Duncan Ward, BCA's general manager, commercial vehicle sales told Easier.com that the three-year lull that is approaching represents a sales drop of over 40 per cent from June 2008. Then, rolling figures produced around 350,000 units compared to just 180,000 units by the end of 2009.

"What it means is that for the next 18 months to two years, there is a potential for the market to be short of 3 to 5 year old one owner used LCV [light commercial vehicle] stock," he explained, as cited by Fleet News.

"If demand begins to surge in line with the expected economic recovery over the same period, we could see prices rise sharply in the used market."

Ward added: "Many professional buyers are moving away from their traditional age and mileage profiles, either heading upstream and competing for the even scarcer late plate vehicles or looking at the best presented part-exchange vehicles coming back to market."

Ward concluded by saying that the availability of used LCV's is effectively at the beginning of an extended supply squeeze. This he calls "Ground Zero" in volume terms.

"Buyers in the wholesale market are going to have to use every channel - physical and online - to acquire stock profitably in the months ahead," he predicts.