Average prices of commercial vehicles up 20% in September

As tighter lockdown restrictions are enforced and the country prepares for the Christmas online shopping rush, we are continuing to see unparalleled demand for vans on Auto Trader. In September, demand for CVs was up 57% year-on-year.  

This strong demand has reduced the average days to sell a commercial vehicle, which is currently 27 days, dropping 34% on last year and 25% since pre-COVID. Supply of vans is, however, outstripped by this demand resulting in a surge in prices. The average price of a used commercial vehicle in September was £15,323 – 20% higher compared with the same period last year.

Van audience levels have also seen a sharp increase, up 46% in September and the high demand for vans is reflected in the number of leads sent to retailers with leads last month 94% higher than September 2019. This follows the trend we’ve seen in recent months, with leads up 98% year-on-year in August and demand for vans up in the same month by 78% year-on-year. The SMMT’s latest new van registration figures released at the beginning of the week revealed a 26% increase in September, indicating the high demand is converting into sales.

Ian Plummer, director at Auto Trader, comments on the findings:

“It comes as little surprise that demand and sales for commercial vehicles is significantly higher year-on-year. During and since lockdown we’ve seen consumer buying behaviours adapt and a considerable acceleration of appetite for online sales: Over a quarter of all retail sales in the UK were done online in August, compared to just 5.9% last August[1]. This is likely to continue apace as we face several more months (at least) of home working and advice to minimise travel. With Black Friday, Christmas and the January sales just around the corner, commercial delivery businesses are strengthening their fleets to fulfil this increase in online sales.

“Interestingly, our data shows a shift from demand of heavy goods vehicles in favour of light goods vehicles which give delivery fleets the opportunity to be more flexible and to service the demands of online buyers. The challenge is, the supply of vans is strained which is driving up the price.”

[1] ONS data: https://www.ons.gov.uk/businessindustryandtrade/retailindustry/timeseries/j4mc/drsi