Skip To The Main Content

Oversupply may hit used van values

by  | 

Used light commercial vehicle (LCV) values could go down following a "sudden and substantial" rise in supply to the market, according to British Car Auctions.

Many of the vans entering the market ahead of their planned removal from company fleets and are adding to stocks already coming from the corporate and leasing sector. The influx also coincides with the tradition slump in demand during the end of the year, BCA said.

It could be a good time for buyers looking for quality vehicles to take advantage of the lower prices and search for cheap van insurance to add to their savings.

BCA added that despite the increase in volumes, good vehicles in some segments such as two-year-old vans will continue to remain in demand.

"Following months of short supply in the market we are suddenly faced with an abundance of stock, just at a time when demand is easing ahead of the Christmas break," said Duncan Ward BCA's General Manager - Commercial Vehicles.

"Even amongst this oversupply, any two-year-old vans will be like 'gold dust' to retail buyers and will generate a lot of interest in the trade as a result. This long-term legacy of the fall in new van sales during 2008 will continue to affect the market for several years to come - next year we will experience a relative shortage of three-year-old vans."

© Press Association 2010