No signs of used demand slowing down as prices rise again

Used van prices on Auto Trader Vans rose 18% in June - the 18th consecutive month where prices have risen, it is clear demand shows no sign of slowing down. Our data shows prices and demand for commercial vehicles is currently at levels previously unheard of. We expect the market will eventually balance itself out, but it is not looking like this will be anytime soon.

June saw prices on our site slow down a little (18% growth year-on-year), as we have 23%in May and a record 24% per cent in April.  The average price of a used van on our site is currently £17,114. Alongside high prices, it is also getting faster and faster to sell a van. Last month, it took on average 32 days to sell a van, which is 63% faster than June 2020, and 30% faster than June 2019.

We have also discovered 60% of people on our website are first-time van buyers, and 75% are looking to buy in the next 3 months.

At the moment, we are also seeing the used van market outperforming the already-strong used car market.

Ian Plummer, our commercial director, commented: “The level of demand in the market has been exceptionally strong across all vehicle segments, but particularly so within commercial vehicles. We began to see a notable upward trajectory in traffic to our van’s platform from very early on in the pandemic, fuelled no doubt by the boom in home deliveries.

However, following the reopening of physical forecourts in April and the economy reopening, that trajectory has accelerated significantly, with visits increasing 48 per cent in June when compared with 2019.

ONS data shows that we continue to buy around one-third of our retail purchases on-line, accelerated by lockdowns but now seemingly part of a more sustained behaviour shift. On top of that, the latest YouGov data shows that business confidence is now markedly higher than last year. Both these factors are now doubt continuing to fuel record levels of demand for commercial vehicles. Coupled with ongoing supply challenges, this demand is having a dramatic influence on used van prices.

Although it’s eased slightly following the record 24 per cent year-on-year growth in April, the 18 per cent recorded in June still makes the 11 per cent increase in used car prices look conservative. This huge growth will ultimately balance itself out, but after 18 consecutive months of price rises and no signs of the record van demand easing, it’s unlikely to be anytime soon.”

If you are looking to invest in more van stock, take a look at our data which details the current fastest selling vans for some inspiration.

Here are the fastest selling vans on Auto Trader in June: