Used LCV market bounces back in 2023

Used light commercial vehicle (LCV) prices rose by 11% in January to £8,210 as the market bounced back in 2023, Aston Barclay has reported.

January’s wholesale demand increased as dealers decided to run down stock in December and as more SMEs looked to buy an additional or replacement van for their business.

Bid levels in the hall and online were both up and prices increased despite average age and mileage rising from 68 to 70 months, and mileage from 102,000 to 108,000 miles between December 2022 and January 2023.

Aston Barclay believes the used LCV market is set at its ‘new normal’ until 2024 as restricted production volumes mean many new vans ordered won’t be delivered for at least 12 months.

Danny Healey, head of development at Aston Barclay, said: “Despite the rising cost of living and a weaker economy, SMEs are still replacing or growing their fleets, just in smaller numbers than in previous years.

“The restricted supply of new LCVs continues to influence the used market with leasing companies extending customer contracts and rental suppliers retaining their vehicles for longer. Demand continues to outstrip supply.”

Aston Barclay said this followed a slow-down of the used LCV market in 2022 with more damaged and lower grade stock passing through auction following ongoing replacement cycles being extended.

The used LCV market continues to see a range of different used vehicles appear in Aston Barclay’s monthly desirability index. In January and February medium and large panel vans such as the Ford Transit Custom, VW Crafter and VW Transporter were the most desirable.

Four-wheel drive pick-ups remain in high demand with the Toyota HiLux and Ford Ranger featuring in January’s desirability top 10 and the VW Amarok, Mercedes X Class, and Toyota HiLux in February’s list.

“The desirability index is being influenced by what stock dealers are short of following a busy end to 2022 and a fast start to 2023. Four-wheel drive pick-ups are being boosted by seasonal demand,” Healey added.

Aston Barclay’s said its monthly desirability index considers three key metrics: web views prior to sale, number of physical and online bids per sale, and the sale price achieved as a percentage of CAP average.