Major players check out used van sector
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Fleet van operators are more likely to / buy from the used trade than ever before — and it's the big operators
which are pushing this trend.
Research into light CV buying trends sponsored by Vauxhall Fleet reveals that more and more operators are sourcing their vehicles from the used sector. But while smaller fleets currently include the most used vehicles it's operators of the bigger fleets that are considering change and moving away from new and towards the secondhand market. Light Commercial Vehicles Trends 2004 was organised onVauxhall's behalf by Peter Cooke, professor of automotive industries management at Nottingham Trent University. It shows that overall 29% of van operators include
used vehicles in their fleet but most of these run fewer than 20 vehicles. In fact 54% of fleets in this class included secondhand vans. The fact that fewer than a third of all van operators use secondhand vehicles is attrib uted to the growing importance of company image, which is
more easily enhanced by new vehicles. But that may be changing: 36% of all van operators said they would consider buying a secondhand light CV in the future — and surprisingly most of the operators considering the move to used vehicles are running more than 250 vans. Used comes before new
The report suggests new businesses tend to start off with used vehicles, particularly vans, in order to keep costs down.This trend is no doubt strengthened by improvements in build quality that make used vehicles a less risky proposition.
Almost half (47%) of operators running 11-19 vans said they would continue to buy secondhand.
Some 70% of respondents said age and mileage combined dictate when vehicles are replaced. Just 23% said age would be the only factor and 3% cited mileage as the only factor.
This supports the theory that operators are keen to keep van fleets up to date and fresh looking to boost their image.
Some 28% of van operators replace their vehicles after five years, while 24% replace them after four years and 23% do so after three years. Only 14% wait longer than six years and only 4% change after two years. Taking the easy route
When it comes to disposing of their vans the larger fleet operators seem more likely to make use of auctions, with 64% of those running 500 vehicles or more saying they would use this route. But overall the favourite means
of disposal is to return vehicles to their original source — dealerships, finance houses or lease companies. In all 37% of operators favour this route, while only 30% of all van operators said they would use an auction. Ironically the leasing agents and finance houses often choose auctions to dispose of returning
vehicles, putting them in a strong position in the used market. Smaller fleet operators prefer private sales or trade-ins, or they sell directly to used vehicle traders. Most surprising is the fact that only 26% of operators bother to prepare used vans for disposal.The larger the fleet the more likely proper pre-sale preparation becomes: 70')/0 of very large fleets (500-999 vehicles) prepare them as a matter of course, compared with only 17% of small-fleet owners (with fewer than 10 vans). •