Tuesday, January 27, 2009
LCV demand picks up after difficult year
Great time for small businesses to buy a used commercial vehicle says British Car Auctions According to leading vehicle auction company, British Car Auctions (BCA), average values for LCV's continued to fall in the final months of 2008 as the used vehicle sector as a whole remained depressed. And with prices now more affordable than ever, it could be an opportunity for small and medium businesses looking to source new vehicles for their organisations.
Although early results in 2009 suggest the commercial market may be bouncing back, there are still plenty of good value vehicles in the marketplace and opportunities abound for small businesses wanting to get the best value vehicle from their budget. Overall, BCA described 2008 as possibly 'the toughest in a decade' for LCV sales with LCV values falling by £1,096 (28.3%). In particular dealer part-exchange vans fell in value by nearly £600 over the whole year, from £2,322 to £1,728 - a significant 25.5% in this budget priced sector.
Nearly-new vans also struggled to maintain values in 2008, following the period of rapid growth in values the previous year when some manufacturers experienced supply issues on new stocks. Average values fell at BCA from £11,063 in January 2008 to £7,998 in December, a fall of £3,065 (27.7%). BCA's Duncan Ward, commented "The used LCV sector relies on a strong and confident economy for the small businesses and solus traders who are the key buyers of stock - either directly or via a retailer.
As the economic turmoil intensified in 2008, small business confidence ebbed away and this was reflected in van-buying activity. "It is quite possible that last year we saw the toughest market conditions in over a decade. With credit tight, there were plenty of buyers and lots of activity in the budget sector, but demand slowed around £5,000 - this seems to be the upper limit that many buyers can afford without resorting to finance. This has led to the unusual situation of the cheapest vans often being the most in demand. "However, early 2009 has kicked off exceptionally well with huge attendances at our light commercial sales around the network. Professional retail buyers are active and are currently busy replenishing their forecourt stock so small business buyers should act quickly to make sure they can still get some great deals."
DATED: 27.01.09
FEED: AW
Although early results in 2009 suggest the commercial market may be bouncing back, there are still plenty of good value vehicles in the marketplace and opportunities abound for small businesses wanting to get the best value vehicle from their budget. Overall, BCA described 2008 as possibly 'the toughest in a decade' for LCV sales with LCV values falling by £1,096 (28.3%). In particular dealer part-exchange vans fell in value by nearly £600 over the whole year, from £2,322 to £1,728 - a significant 25.5% in this budget priced sector.
Nearly-new vans also struggled to maintain values in 2008, following the period of rapid growth in values the previous year when some manufacturers experienced supply issues on new stocks. Average values fell at BCA from £11,063 in January 2008 to £7,998 in December, a fall of £3,065 (27.7%). BCA's Duncan Ward, commented "The used LCV sector relies on a strong and confident economy for the small businesses and solus traders who are the key buyers of stock - either directly or via a retailer.
As the economic turmoil intensified in 2008, small business confidence ebbed away and this was reflected in van-buying activity. "It is quite possible that last year we saw the toughest market conditions in over a decade. With credit tight, there were plenty of buyers and lots of activity in the budget sector, but demand slowed around £5,000 - this seems to be the upper limit that many buyers can afford without resorting to finance. This has led to the unusual situation of the cheapest vans often being the most in demand. "However, early 2009 has kicked off exceptionally well with huge attendances at our light commercial sales around the network. Professional retail buyers are active and are currently busy replenishing their forecourt stock so small business buyers should act quickly to make sure they can still get some great deals."
DATED: 27.01.09
FEED: AW
