Small Business to be affected by Dwindling Used Vans
Wednesday 01 February 2012 Back to Blog
According to a new BCA report from Buckingham University Centre for Automotive Management which was authored by Professor Peter Cooke the used van market is dwindling. This may have an impact on small businesses many of which use a used LCV rather than buying, leasing, or contract hiring a new van.
The report cites fleet corporations keeping vans in service for longer periods of time, and lower prices of new vans which have declined due to the recession.
Currently, the biggest buyer of used vans are small businesses, sole traders, and partnerships, and it is this area where a dwindle in the number of second hand vans will impact the most, and make it harder for businesses of this kind to get started.
The wholesale and retail LCV trade will also be adversely affected if vehicles under 5 years old cannot be found.
The professor said: "Small businesses as a group are the largest buyers ofused vans and typically prefer vehicles up to five years old. However, availability is falling because of lower new van sales since 2008 and the trend for larger businesses to hold on to vans for longer."
The report predicts that the shortage will hit in the future rather than in a few months time which provides some relief for businesses which rely on a new van.
He added: "There will be fewer 'first time'used vanscoming to market for buyers to choose from, which will affect price and impact used LCV supplies further down the supply chain."