It’s an ill wind…

Much has been written about the economic effects of the Covid-19 pandemic and the subsequent lockdown and it is fair to say that, in general, these effects are perceived as negative.

However, not everyone are wringing their hands and moaning about how awful it all is – auction houses have been reporting a strong market in used vans during the month of September, with demand exceeding supply, thus pushing up used van values past last year’s levels.

According to The National Association of Motor Auctions (NAMA), prices are expected to reach record levels for the rest of the year and into 2021; this was the conclusion of a recently-held NAMA member meeting where discussions took place around the current and future market.

There are two main reasons behind this optimistic outlook; firstly, in the UK in September, people were encouraged to return to work and, secondly, during lockdown we have seen a marked increase in online sales, and, thus, home deliveries, where vans are frequently used.

Steve Botfield, Senior CV Editor at cap hpi, described the current wholesale market for LCVs as “astounding”, and added: “Auctions are achieving exceptional prices for vehicles. Over the last three months, values have increased on average by over 10.5 per cent, with no early signs of this performance abating”.

This outlook is echoed by Louise Wallis, Head of NAMA, who said: “The auction market remains buoyant and continues to grow despite times of economic uncertainty. Demand for LCVs has been extremely strong for the industry as online sales have been established as a crucial component towards the market’s growth.” In fact, Wallis believes that there has been a fundamental shift in consumer shopping activity, from physical to online retail, with the subsequent increase in deliveries supporting the demand for new vans.

And what is the outlook for the future? Says Wallis; “Going forward, we expect the auction market to remain at high levels especially if online sales continue to perform well”. As they say, it’s an ill wind…