LCVs are a good profit opportunity... and age is no barrier
Car finance specialist NextGear Capital is encouraging dealers to stock up on used light commercial vehicles (LCVs) – and age need not be a barrier, says the company.
The push follows news that the UK economy grew faster than previously estimated in the first three months of the year, boosted by a better performance from the construction industry.
Such positive news in the UK economy is driving the LCV market. The Society of Motor Manufacturers & Traders (SMMT) has forecast new record of 355,000 new sales in 2015, beating the record of 337,000, set in 2007.
It is clear that businesses of all sizes are gearing up and that 'white van man' is ready to help drive the UK economic recovery,says NextGear Capital.
And since this year's new LCV sales will not join the wholesale auction market for the next three to five years, it presents retail opportunities for older LCV stock.
In May, for example, more than 40% of all LCVs sold by us were over 60 months in age. In fact, more than half of the 3.8 million vans on Britain's roads are over seven years of age.
Manheim Auctions' director of Commercial Vehicles, James Davis, explains: "Older vans represent a good value proposition with younger vans set to continue to be in scarce supply."
NextGear Capital's sales director Nigel Warrington commented: "We are seeing more interest in dealers looking at LCVs. Dealers can see that even an older LCV is a good profit opportunity. We can see that many LCVs do not stay 'on our Stocking Plan' for long for our customers. LCVs are a definite opportunity for dealers right now."