Demand for used commercial vehicles has consistently outstripped supply during January, boosting prices and keeping conversion rates high for medium-sized, good-quality units. This situation is expected to continue through the first half of the year, as the scarcity of late-plate vans remains an issue for dealers and prices threaten to climb even higher, according to Glass’s – publisher of Glass’s Guide to Commercial Vehicle Values.
“The only cloud on this sunny horizon would be if, in desperation to secure new sales, manufacturers give the green light for significant discounts,” warns George Alexander, Chief Commercial Vehicle Editor at Glass’s.
“In one blow, this would undo all the good work done by dealers over some very testing years which have seen prices for used CVs climb to their current highs. An increase in registrations is necessary for the long-term health of the market, but if this is achieved by underselling new product, the negative consequences for residual values will be felt over several years as happened in the early 1990s.”
“New vehicle sales have yet to find a forward gear and are unlikely to improve much until after the General Election. Even then, when a little more business confidence and clarity has returned, franchised dealers are likely to remain sceptical throughout this year in case the economy were to dip again, despite the UK having finally moved out of recession,” notes Alexander.