The used van market is seeing more physical buyers back in the auction halls as the number of higher mileage vehicles entering the used market is increasing according to Shoreham Vehicle Auctions (SVA).
Generally higher ages and mileages are accompanied by more damage and any NAMA grade 3, 4 and 5 vans are receiving careful inspection in person before a buyer will decide whether they can afford to repair the vehicle and sell it at a profit.
Typically, these vans are receiving fewer bids in an ‘online only’ environment and which is why SVA’s MD Alex Wright believes more buyers are now back in the auction halls.
“Typically, we are seeing more higher mileage vans coming into the market and buyers are having to inspect them at close quarters before making a bid, especially as prices are still high. Based on our 2022 LCV sales the market has cooled down from 2021 and prices may have reached a ceiling,” explained Alex Wright SVA’s MD.
“However, the global shortage of new vehicles is helping keep demand strong which gives the market stability against the backdrop of an ever-changing economy,” he added.
Due to the uncertain economy many SMEs are deciding to opt for a replacement used van rather than signing up for long term finance on a new van. Even if they are prepared to opt for finance, they are being forced to buy a used van due to the continuing long lead times of new vans.
Rental companies are still buying used LCVs and cars at auction to meet their needs, especially those who were in previous buy back deals with manufacturers which have now been scrapped. Smaller car derived and medium sized panel vans continue to prosper due to rising fuel costs.
“Our Tuesday LCV sales have been vibrant with buyers which is good to see. Buyer numbers are certainly back to where they were pre-pandemic and when our economy is continually changing dealers want to see what is happening at auction for themselves. Online bidding has been such an important part of the remarketing industry, but nothing replaces the power of buyers being able to physically inspect an older vehicle before it goes under the hammer,” said Wright.
