Low supply to keep used van prices up
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WHILE DEMAND for second-hand vans is starting to diminish, the overriding dearth of light CVs entering the market will keep prices strong.
MD of Shoreham Vehicle Auctions Alex Wright says the market has reached an impasse.
“The market is there, demand was strong until Easter but since then it has dipped. The lack of confidence and security in the business sector has led to a lack of demand,” he says.
Conversion rates at Shoreham have dropped from more than 90% for its weekly sales to 65%. “I can’t see prices dropping, the lack of supply will stop that happening, but you have to work harder to sell the vehicle.
“Our objective, when we have got a vehicle from a vendor, is to give it as wide an audience as we can,” he adds.
Wright predicts a tough slog through to September as there are three months with bank holidays, as well as the summer holidays, which is likely to further slow demand. ■