Britain may be in the grip of a recession, but demand for used LCVs remained at high levels in February, according to auction firm BCA.

Buyers are competing strongly across a broad range of products, according to BCA’s head of LCV sales, Duncan Ward, and prices remain firm.

With a relative shortage of stock, buyers are prepared to bid on nearly every vehicle on offer.

For their part, vendors are receptive to current market sentiment and sales conversions are at exceptional levels.

As a result, BCA has launched a new sale day for LCVs at BCA Bedford, with between 150 and 175 vehicles on offer per week, including stock from LeasePlan, ING, LloydsTSB and Volkswagen Financial Services, as well as locally-sourced dealer and fleet vehicles.

Mr Ward said: “February has delivered more of what we saw in January. Following a long period in the doldrums, there is a lot more confidence in the used LCV market in 2009 and that is reflected in stronger bidding, higher conversions and improving prices.”

Some dealers are reporting exceptional retail demand. Mr Ward said: “Many dealers ran stocks down last year and have been busy replenishing their forecourts in 2009 in response to a spike in retail demand.

"Vans that appeared too expensive for the marketplace last year now seem to have washed through.”
The mini-boom runs counter to the tough economic climate many small businesses are enduring, but Mr Ward believes it is simply a sign of the times.

He said: “There are increasing numbers of redundancies in manufacturing and engineering and many of these will be skilled tradesmen and women who will strike out on their own.

"The first thing they will buy with their redundancy money is a van.”

In addition, Mr Ward believes many small businesses will have ring-fenced the troubles of 2008 and are now moving on and looking to the future.

He said: “New budgets will be in place and many businesses will look to replace any long-in-the-tooth vehicles with newer, more efficient models.

"With the used market representing such good value for money, why would they look elsewhere?”

He added: “Are these the first green shoots of recovery? After all, used commercial vehicles are hardly a glamour buy – they are a business tool and if sales are strong, it suggests there are plenty of businesses out there looking to the future.”

Market round-up: Dealers report optimism among the economic gloom

Despite the dramatic slowdown in new van sales, used vehicle specialist CAP is reporting ‘continued positivity’ among the UK’s used van dealers.

More dealers are reporting improved performance in February over previous months and retail sales are increasing.

A CAP spokesman said: “Looking to the immediate future, there is a fair degree of optimism among dealers, more than half of whom say they are now more confident about the market than they were a month ago.

"No dealers described themselves as a lot less confident about the coming months than previously and only 12% said they were a little less confident.”

Over at Glass’s, experts have seen rising numbers of Ford Fiestas and Vauxhall Corsavans being defleeted, which has inevitably hit prices.

Renault Kangoos, Citroën Berlingos and Peugeot Partners boasting smart condition and sensible warranted miles may hit the right note with some used buyers but pressure mounts and performance is undermined when, typically, one-year-old examples are offered in the knowledge that some dealerships are offering ultra competitive prices on new.

George Alexander, editor of Glass’s Guide to Used Commercial Vehicles, added: “Oversupply of late-year, 3.5-tonne stock will further depress prices as buyers tighten their stranglehold.

"With such an abundance of choice, the scales tip in favour of clean and tidy product from the premium marques offered with good horsepower.

“Clean chassis-cabs fitted with the best derivative bodies are still selling for good money, with the exception of any vehicle destined for the building or construction markets.”