Migration of workers into UK helps bolster used van prices

The UK’s leading leasing company, Lex, which disposes of over 10,000 used vans at auction each year, has seen a large demand from migrant workers for used vans to enable them to re-establish their trades in the UK.

Lex holds three van auctions each week across the UK and has seen a significant increase in the number of immigrants attending these sales and bidding on its vehicles in 2007.

Although most of this interest has been on vans at the budget end of the market, typically the older, higher mileage vehicles, this increase in buyer demand, together with the shortage in supply of new vans following the introduction of the new Ford Transit range, has led to increased competition at all levels in the used van auction arena in 2007.

In particular, Lex has experienced a 15% increase in transaction prices for sales of LCVs in excess of four years compared to the same period in 2006, with more than 94% of such vehicles selling at the first time of entry at auction, compared to a one per cent increase in used car prices of the same age.

“It’s interesting to see the positive impact that the increase in immigration has had on the used van market in 2007,” explained Jon Walden, Lex Managing Director. “Prices in the used van market have been very stable over recent years, but the older, higher mileage vehicles can sometimes be a little more difficult to sell.

“Performance in the Used Van market this year has exceeded everyone’s expectations with demand exceeding supply throughout 2007, creating much more competition in the bidding, particularly at the budget end of the market. Although we have recently seen the start of the traditional seasonal downturn in the used van market, all leasing companies have a reason to be grateful for the increased van prices achieved in 2007, with the new influx of migrants from the EU being a key catalyst in this phenomenon” he added.