Shoreham Vehicle Auctions (SVA) achieved its most successful month for light commercial vehicle (LCV) sales in 2024, as prices returned to pre-Covid levels in late July and early August.
The auction house reported conversion rates exceeding 90%, a significant increase from the typical 50-60% rates seen earlier in the year. This surge was driven by dealers seizing the opportunity presented by lower prices, with some making purchases for the first time in months.
Defying the usual summer slowdown in LCV demand, this strong sales performance marks the first positive sign for the market in 2024. In fact, prices have even risen for certain models as buyers flood back into the market.
Small and medium-sized enterprises (SMEs), the primary buyers of used LCVs, are taking advantage of the price drop, recent interest rate cuts, and a new government’s commitment to investing in housebuilding. Additionally, the high cost of new LCVs and associated lease rates is pushing buyers towards used options.
Vehicles that sold for up to £10,000 in the wholesale market a year ago are now going for as little as £6,000, driven by a glut of basic white models, some with missing features due to Covid-era production constraints. However, high-spec LCVs with full-service histories command premium prices due to their scarcity.
Alex Wright, SVA’s managing director, commenting on the unusual market conditions, said: “The market is unprecedented in that it normally slows down during the summer. Speaking with over 100 dealers in recent weeks, many are now buying vehicles to stock up and meet the growing demand from SMEs eager to capitalize on the price drop.”
He added: “The used LCV market is as buoyant as it was pre-Covid, with vehicles now much more affordable. We expect conversion rates to remain high throughout the rest of the year, as aging vans in need of replacement continue to drive demand. Dealers are also confident that prices have stabilized and are unlikely to drop further.”
