A report from one of Britain’s universities suggests that more van drivers than ever could be looking for cheap commercial vehicle insurance in the future, as used vans could well be in high demand and the vehicle of choice for many businesses.
A team led by Professor Peter Cooke at the University of Buckingham’s Centre for Automotive Management, believe that second hand commercial vehicles will become highly sought after vehicles because of their career longevity.
The report was published by British Car Auctions (BCA), who sends significant numbers of light commercial vehicles through their auctions, and backs up their own findings.
Duncan Ward BCA’s general manager for commercial vehicles, said that vans were more and more becoming part and parcel of everyday business life, with used vans being the preferred choice of small and medium size companies who can’t justify expenditure on new vehicles. He went on to say “Used LCVs also have a significantly longer ‘business life’ than cars, two or three more businesses using them, whereas cars typically have just one business user before being sold to a private motorist.”
The average price for a second hand van going through auctions in June was around £4,300, a drop on the 2010 highs achieved in April which were a couple of hundred pounds more, but still healthy when compared to 2009 figures. In the same period, new van sales continue to grow as companies who have held on to old vehicles through the financial downturn are eventually returning to the showrooms to buy new motors.