Shoreham Vehicle Auctions (SVA) has indicated that the used LCV market is showing signs of change caused by Brexit and with the introduction of the London Ultra Low Emissions Zone (ULEZ).

According to SVA, while the general level of prices and demand remains high, businesses seem to be more cautious and are buying cheaper vans rather than taking out a loan or using their own cash to buy a more expensive van.

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This caution is reflecting in turbulent buying patterns of dealers with the specialist higher cost stock such as tippers and models currently in high supply such as Ford Transit Customs and VW Caddys.

Those operators who work in and around London and are affected by the new ULEZ, will have to invest more money in Euro 6 vans, said Shoreham. They are upgrading their fleets prior to the April ULEZ launch to avoid hefty daily fines for entering the capital.

“Many smaller companies who buy the majority of used vans are currently investing £4-8,000 in a used van rather than £10-15,000 with Brexit still hanging over the economy,” said Tim Spencer, SVA’s commercial vehicle sales manager.

“Used LCV prices haven’t fallen dramatically and there is no sign the market is going to see a major downturn, but we are aware of a definite change in buying habits and confidence caused by Brexit and ULEZ.”

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SVA gave an example of a recent batch of two-year old tippers that struggled to sell at Shoreham in one week and made above their £15,000 book value the next. In addition a handful of 10-year old ex-council and ex-fire brigade Ford Transits made 50% above book based on their excellent condition and full-service history.

This month the British Vehicle Rental and Leasing Association (BVRLA) has called on policymakers to work more closely with fleets in tackling London’s air quality problem, one month before the launch of the Ultra-Low Emission Zone (ULEZ) in the capital.