Buyers turn to high mileage, high damage vans to meet LEZ rules

USED van buyers in the London area looking to meet the capital’s new Low Emission Zone regulations, which were introduced earlier this month, are not behaving as the market thought they would.

Instead of buying four to six year old ex-fleet vans in good condition, they are purchasing 56-plate and younger vans with high mileage or in poor condition, claims Shoreham Vehicle Auctions.

 

Any vehicle that is cheap and that enables them to adhere to the new standards that apply to Euro4 vehicles registered afterOctober 1, 2006is being bought, says the company.

 

The result has been a major increase in residuals of high mileage vans in poor condition to such an extent that some have appreciated in value by as much as 50% in just the last few months.

 

That leaves used van traders and franchised dealers who have stocked up on four to six year old vans in anticipation of the change in regulations rethinking their strategy by introducing lower price vehicles to their forecourts.

 

While those used van retailers already stocking sub three-year, low price product in theLondonarea are enjoying an upturn in business.

 

‘We have seen buyers at Shoreham competing to buy low price post October 1-registered vans with damage and or high mileage, which has in turn increased prices quite dramatically. A 56-plate Transit Connect or Vauxhall Combo that would have been worth £1,000 five months ago is now selling for £1,500,’ explained Alex Wright, Shoreham Vehicle Auction’s managing director.

 

‘These buyers coming out of a nine to15-year-old vans are small businesses which aren’t high mileage users and which can’t or don’t want to get finance. The result is them turning their attention to the cheapest vehicle possible to avoid being penalised which is a complete U-turn in their buying patterns predicted by the industry.’


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