Used Euro 6 vans maintain strong values but supply is at risk

Demand for used Euro 6 vans is expected to grow as Clean Air Zones are rolled out across 33 local authorities from 2019.

Shoreham Vehicle Auction’s managing director Alex Wright says this will help keep used prices strong, but his main concern is that new Euro 6 vans will become increasingly difficult to source as manufacturers move their production into the left-hand drive economies that are starting to grow.

“There will be a high demand for new and used Euro 6 vans from 2019 to enable operators to enter our cities without incurring massive fines.

“OEMs have invested tens of millions in aggressive discounts and finance offers to drive sales in the UK in the past few years. When you have other European economies that are growing and where demand for new vans is high then surely they will redirect their marketing money away from the UK,” said Wright.

“That will mean prices of new Euro 6 vans will start to creep up, and UK operators will be faced with longer new van lead times as new stock becomes more restricted. They may even restrict supply to high discount high volume sectors of the market.”

Wright predicts a steady supply of used Euro 6 vans coming into the marketplace in 2018 and 2019, particularly from rental companies once they have begun defleeting their older Euro 5 vehicles. In the run up to the April 8, 2019 London Low Emission Zone launch, demand for Euro 6 used stock will remain healthy according to Wright, but it’s after 2020 that used prices could go sky high.

“An increasing number of operators will be forced to sell their Euro 4 and 5 vans that will be snapped up by operators unaffected by the legislation in regions like Wales, Scotland and the south west. Demand for Euro 6 vans will continue to increase in 2020 and beyond and prices will rise accordingly. Just as we think the used van market has reached its ceiling then something like this happens. With the post Brexit UK economy likely to grow then it could be a major challenge for SMEs looking to buy used van stock to support the growth of their businesses,” said Wright.