Used LCV prices fell in Q2 by -1.6% as the market remains stable according to Aston Barclay’s used market report.
Prices fell by £291 to £7,847 in Q2 from £8,138 in Q1 with the average age falling from 70 to 65 months and mileage increasing from 106,000 to 107,000 miles.
However, the LCV sector remains stable because of an acute used van shortage which is likely to recover when OEMs resolve their new vehicle production levels which may not be until 2024. The market stability was confirmed when Aston Barclay reviewed the long-term average price performance of vehicles sold at auction since 2020.
Between Q3 2021 and Q2 2022 prices fell by just -5.6% (£474) and prices are still 59.3% (£2,923) higher, at £4,923 than Q1 2020 prior to the start of the Covid-19 pandemic.
Prices of used double-cab pick-ups also fell in Q2 by £745 to £14,145, the largest quarterly price fall in two years.
Many of these vehicles have a second life as a recreational vehicle and a decline in retail confidence may have helped contribute to the price fall. However, prices have remained in the £14,000-£15,000 bracket for the past four quarters.
The popularity of different types of vans is also changing as SMEs look for the right van at the right price according to our July desirability index. Seven out of the top 10 most desirable used vans were medium to large panel vans led by the Peugeot Boxer and Renault Trafic, while the remaining three places were taken up by pick-ups led by the Ford Ranger and Mitsubishi L200.
Aston Barclay’s desirability data takes into consideration 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.
“The LCV sector shares the same new vehicle production challenges as the car industry. Leasing companies are continually extending contracts due to the lack of new LCV production which is in turn starving the used market of three-to-five-year-old stock,” explained Geoff Flood, Aston Barclay’s light commercial vehicle sales manager.
“The problem shows no sign of improving which is why despite the continued price falls the industry’s stock shortage is keeping the sector stable,” he added.