New BCA Report highlights issues for small business sector with decline of quality and price rise
Dwindling supplies of used LCVs could impact the small business sector according to a new BCA report by Professor Peter Cooke and the team at Buckingham University Centre for Automotive Management.
‘The Used LCV Market Report 2012’ suggests the availability of cheaper good quality used LCVs will decline in the next few years, because of the double whammy of lower new van sales since the recession and large corporate fleets keeping vans in service longer before selling them.
Cooke suggests this could have a direct effect on small businesses, partnerships and sole traders, who are the biggest buyers of used LCVs and may even slow down economic recovery. The shortage of units under five-years old could also present a real problem for the wholesale and retail LCV trade who could find it increasingly difficult to source good quality used LCV stock.
Mr Cooke commented “Small businesses as a group are the largest buyers of used vans and typically prefer vehicles up to five years old. However, availability is falling because of lower new van sales since 2008 and the trend for larger businesses to hold on to vans for longer.”
Cooke confirms this will have a number of knock on implications for the LCV marketplace for several years to come. The average vehicle age will certainly increase significantly and there may be a reduction in the overall numbers of vans on the road.
He says “There will be fewer ‘first time’ used vans coming to market for buyers to choose from, which will affect price and impact used LCV supplies further down the supply chain.”
The report highlights the looming used LCV supply gap facing the industry over the next few years.
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