Commercial vehicle sector 'to see second-hand shortage'

There is likely to be a shortage of high-quality second-hand light commercial vehicles (LCVs) on the market in the coming years, according to a new report.

Analysis from retail organisation British Car Auctions (BCA) has warned that van insurance policyholders are facing a "black hole" in terms of supply of used models, which could cause difficulties for small businesses and sole traders.

Figures released by BCA in recent months have shown that the value of the average used van has been on the up, with demand increasing at a relatively steady level after taking a tumble in April 2011.

However, the body's new 2011 Used Car Market Report has observed that this growth could be placed at risk by the relatively sluggish performance of the new van purchasing market, which has seen a major downturn since 2007.

Because of the relative lack of new vans registered since this time, the years between 2011 and 2015 are likely to be characterised by a corresponding drop in high-quality used vans coming on to the second-hand market.

Moreover, the fact that companies are now striving to keep their LCVs in use for longer means that the vans which do reach the market are older and have a higher mileage than would be desirable for many prospective buyers.

Professor Peter Cooke of the University of Buckingham said this will lead to an overall increase in the age of vans on UK roads, while demand for newer second-hand LCVs will increasingly begin to exceed supply.

The expert said it is therefore up to retailers to explore all their options if they wish to continue meeting the needs of buyers looking for high-quality used commercial vehicles.

"Retailers need to examine their used LCV sources and the volumes that are available going forward - potentially they may need to develop new sources of used LCVs in the short/medium term to protect supply," said Professor Cooke.