Shoreham Vehicle Auctions (SVA) has recorded its most successful month of LCV sales in 2024 as prices realign back to pre-Covid levels during late July and early August.
SVA reported conversion rates of 90% plus as dealers took advantage of lower prices, with some buying vehicles for the first time for many months. This compares with conversion rates which have been typically as low as 50-60% during 2024.
Strong demand and sales have bucked the annual summer trend where demand for used LCVs traditionally slows down during July and August and is the first positive sign for the market in 2024. Prices have even risen on certain models as buyers return to the market in their numbers.
SMEs who are the main buyer of used LCVs are now looking to take advantage of the fall in prices, the recent fall in interest rates and a new government promising investment in housebuilding. They are also turning to used vehicles as new LCV prices and subsequent lease rate remain very high.
Some LCVs that were selling in the wholesale market for up to £10,000 a year ago are now selling for as little as £6,000 fuelled by the large volumes of base spec white vehicles. Some of these vehicles have missing specification caused by restricted vehicle production during Covid due to chip shortages. On the flip side when a metallic LCV with a high specification and a full-service history does reach the market, demand and prices are high due to limited availability.
“The market is unprecedented in that it normally slows down during the summer. Talking to more than 100 dealers over the past few weeks, they have returned to buying vehicles for stock and to meet demand from a growing number of SMEs looking to take advantage of the fall in prices,” explained Alex Wright, SVA’s MD.
“The used LCV market is as buoyant as it was pre-Covid with vehicles much more affordable. We anticipate higher conversion rates will continue now for the rest of the year as there are many aging vans in the market where replacement cycles have been extended waiting to be replaced. Dealers are also confident that prices are not going to drop any further,” he added.
