Influx of late-year LCVs could be good news for retailers

The influx of used light commercial stock currently inundating auction sites could be one of the biggest opportunities to present itself to retailers in a decade or more, according to EurotaxGlass’s, publisher of Glass’s Guide to Commercial Vehicle Values.

Large volumes of commercial vehicles are currently being de-fleeted by rental and leasing firms – an inevitable consequence of the many three- and four-year contracts that were signed during a time of soaring registrations. This has produced a surge of late-year vans arriving on the used market.

“With 2007 being a record breaking year for new vehicle registrations, fleets have plenty of additional used vans to dispose of,” explains George Alexander, Chief Commercial Vehicle Editor at EurotaxGlass’s.

“Following 30 months of reporting late-year light commercial stock shortages, we now find that there is ample supply. This could prove to be a major opportunity for retailers to acquire stock at attractive prices. Despite not all stock being in perfect condition, vendors, dealers and customers can hopefully find sufficient common ground to achieve another good year for used van sales in 2008,” continues Alexander.

Concerns about the UK economy towards the close of last year have also contributed to the greater availability of used vans, says Alexander. “It is not surprising that businesses do not wish to carry unnecessary capacity within their fleets at a time of economic uncertainty. January is a time when the used market is commonly close to dormant and the extra LCVs taken on in the run-up to Christmas, now being returned as surplus to requirements, have resulted in auction sites being crammed with late-year vans.”