Used values to rise as semiconductor crisis hits new van production

Prices for used vans are expected to rise in the coming weeks as new vehicle supply is affected by the global semiconductor crisis.

Ford is the latest manufacturer to announce plant shutdowns, with its Transit factory in Turkey closed until June 13.

Remarketing firm Aston Barclay says the lack of new vehicles will fuel the continued challenge that the market faces of demand outpacing supply of used vans which is forcing prices up to record levels.

The global semiconductor shortage, caused by a surge in demand during the pandemic for consumer electronics and a recent fire in a key supplier in Japan, is impacting on the ability of all automotive manufacturers to produce vehicles equipped with certain components, according to The Procurement Partnership.

Lead times for new vehicles have been increased and now stand at up to 12 months for certain factory-order models.

Alongside Ford’s closure, VW has also suspended production of the Crafter for three weeks, while Renault has removed certain infotainment systems from vehicle specification until further notice.

Stellantis, incorporating PSA and FCA, has extended lead times to between four and 10 weeks for many commercial vehicle models.

“The Ford factory shutdown news is a blow for the new and used market as it will prevent a supply of much needed used vans hitting the auctions,” said Geoff Flood (pictured), Aston Barclay’s national light commercial vehicle manager.

“Demand for every age, mileage, make and model of light commercial vehicle has been strong over the past two weeks. You can ignore the used value guides as vehicles are making what dealers are prepared to pay to secure the van.

“Some vans have gone under the hammer for two to three times reserve and this trend will continue until such time as we see factories re-open and used supplies improving,” added Flood.

Two highlights from the Aston Barclay auctions were a 55-plate Ford Transit Custom that made £1,900 despite being valued at £600 and a 17-year-old Toyota van with 22,000 miles on the clock that booked at £1,900 but made £6,250.

Used LCV values have already reached record levels for the three months running, accroding to BCA, as demand for light commercials remains strong.