It seems the old adage of once bitten, twice shy, is ringing true for cash-strapped individuals who are in the market for a new van, as buyers are turning to older vehicles in a bid to avoid the requirement for external credit.
Finance deals were for a long time the staple of the van retail market, with customers paying for their commercial vehicles over the course of months and years through the use of external vehicle financing. However, it is believed the fallout of the economic crisis has led many individuals to steer clear of finance deals wherever they can.
A number of commercial vehicle auctioneers around the country have reported the surge in the number of customers targeting older stock. Buyers are still looking for good quality stock from traders they know to be reliable. Top sellers in the current second hand market include ex-utility LCVs which are anywhere from three to five years old.
The increase in the sale of older vehicles has led to patchier sales of nearly new vans in the £8,000-£15,000 bracket, with few willing to accept such an outlay when there is a surplus of older vans as well as an abundance of discount deals on new vans.
The trend seems to derive from SMEs and sole traders, who are doing everything they can to avoid taking out finance on their vehicles. This explains why three, four and five-year old vehicles with a reduced price tag are selling so well.
Interestingly enough, vehicles which experience an intermittent supply and are difficult to source are also in high demand. Vans such as the Nissan Cabstar Tipper are selling for up to £5,000, despite having an average value of £3,550.
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