Used Van Dealers Wrong Footed
Wednesday 11 January 2012 Back to Blog
Used van dealers have seen a surprising trend among their sales and many have been left unable to fulfil demand.
In what is believed to be an effort to beat paying the London Low Emission Zone (LEZ) charges, used van buyers are buying poor condition but younger vans. Subsequently dealers which stocked ex fleet vehicles that are 4-6 year old are not shifting as they thought.
The types of vehicles being sold can be ones which are carrying a fair amount of damage. According to Shoreham Vehicle Auctions small business owners have snapped up these vehicles.
Under the new LEZ charges vehicles which are not compliant to European regulations have to pay a charge to drive in London. Vehicles which are below a certain age are exempt from the charge as their engines already comply with European regulation.
Alex Wright who runs Shoreham Vehicle Auctions said: "A 56-plate Transit Connect or Vauxhall Combo that would have been worth £1000 five months ago is now selling for £1500."
Wright continued: "Buyers coming out of a 9-15 year old van are small businesses which aren't high mileage users and which can't or don't want to get finance. The result is they turn their attention to the cheapest vehicle possible to avoid being penalised."
The change in buying habits if sustained will surely bring a change in pricing for the used van market, which providing a company operates outside of London, could see a significant amount of money saved on buying a used commercial vehicle.