Need for caution after subdued month for LCVs

Having suffered a significant downturn in sales over recent months, the market for light commercial vehicles remained subdued in August, according to the commercial vehicle experts at EurotaxGlass’s.

Auction centres reported a patchy performance. While attendance levels at some sites were respectable, unfortunately these numbers don’t always translate into more sales, explains George Alexander, Editor of Glass’s Guide to Used Commercial Vehicles.

Trade buyers that off-load stock through auction, hoping to make a fast buck, have been especially frustrated by the lack of bidding activity. “Most buyers are targeting the nicest stock, and things could have been a lot worse if it were not for these better vans performing well,” continues Alexander.

At recent sales, vans directly from major leasing and rental companies have taken centre stage, with their representatives allowing big numbers of lots to sell, even where price expectations have not been reached. “The upside of this strategy is that often such a busy leasing section of an auction will see prices rise noticeably once buyers hear the hammer dropping,” he adds.

Prices for small vans are coming under greater downward pressure as the volumes rise. Clean examples of low-volume stock boasting sensible mileage perform best.

By contrast, models with older diesel technology prove difficult to shift. “The exceptions are those with more ‘oomph’ under the bonnet, which increases the chances of a sale,” Alexander concludes.