Fleets choosing used vans ‘to avoid buying electric LCVs’

The economic slowdown is forcing some fleets to turn to used vehicles rather than sign up to long term finance agreements for new vehicles, according to Shoreham Vehicle Auctions (SVA). 

It is reporting that reduced economic confidence, illustrated in the latest new van registration figures, has helped strengthen the used light commercial vehicle (LCV) market in December and January.

SVA saw used LCVs being sold right up to Christmas with prices remaining strong across December, where generally they fall back two weeks before, and in January prices stayed strong with conversions averaging in the mid to high 90s.

Some fleets, says SVA, continue to buy used LCVs at auction to avoid increasing pressure from OEMs to order one or more EVs for every 10 new diesel vehicles they order. 

This helped contribute to the strongest December and January SVA MD Alex Wright says he has experienced 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,” explained Wright. 

“The gap between the price of a new van and a used van has also reached record levels with many SMEs unable to justify paying £40-50,000 for a new 3.5 tonne van. This is particularly relevant with specialist vehicles such as tippers and dropsides.”

He added: “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.” 

Shortage of used vans

Wright estimates the weaker Covid-induced new LCV sales in 2022 will leave the market short of between 80-100,000 three-year-old used vehicles in 2025 and in 2026. 

“Competition from dealers is forcing up prices, especially for the clean three-year old vehicles with a full-service history which are less readily available in the current market,” he said. 

“We are likely to see a buoyant used LCV market in 2025 and into 2026.”

He explained: “The used LCV market was extremely tough for the first seven months of 2024 and finally lower prices and a slowing economy encouraged more dealers to start refreshing their stock. The used market suddenly sprung into life.”

More electric LCVs have already started reaching the auctions in 2025, but the majority are older models with a lower range and slow charging speed and demand has been slow, reports SVA. 

Some ex-utility electric Vauxhall Vivaros and the Toyota Proace with a larger battery have bucked the trend, while sub-£10,000 car derived vans such as the Kangoo have found buyers.

He concluded: “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.”