Despite the introduction of a £2000 discount on new vehicles, as part of the Government’s new ‘scrappage scheme’, it seems that many of the UK’s van drivers are opting to buy second-hand, rather than invest in new vans. British Car Auctions suggests that the new scheme is having little effect on encouraging consumers to buy new vehicles, saying that less than 2% of the vehicles going through its auctions actually qualified for the scrappage scheme as they were less than 10 years old. In contrast British Car Auctions as noted a consistent demand for second-hand vans and they are just £43 behind year-on-year, compared to May in which year-on-year prices were down by £313.
In comparison, data released by the Society of Motor Manufacturers and Traders suggest that the demand for new vehicles is not what it could be, after van sales fell in April, by a staggering 50.2%. According to Manheim Auctions, the general consensus seems to be that prices are strengthening faster than at any point since December 2008.
Vehicle valuers Glass’s Guide consider that the rise in interest for used vans might be down to a shortage of used stock, caused by the low level of new registrations. Combined with the possibility that there may be private buyers bidding against the trade prices look certain to continue to climb. In addition, with redundancies sweeping the board, many homeowners are turning to DIY, rather than using professionals. In turn, more van drivers may consider setting up their own businesses as a side effect of the tough economic climate and will need further vehicles.
With the cost of second-hand vans looking to increase, those interested in these vehicles should consider moving swiftly. Not only do second-hand vans offer great value for money, they can also offer fringe benefits, especially when it comes to things like van insurance. Assuming that the van has no major faults and is in good working-order, cheap van insurance is a major attraction for would-be owners. At auction, most of the vehicle’s defects have to be stated and that is usually reflected in the price. The same is true for second-hand dealerships and the majority of private sales; any aspects of the vehicle that may require work or could prevent it from functioning adequately have to be declared. Insurers look more favourably on second-hand vans, especially when it comes to commercial van insurance. Of course, there are other factors to be considered such as the owner’s driving history and whether they have made claims or not in the past. If there are any defects to the van, these will have to be corrected, in order to qualify for cheap van insurance. In addition, a driver’s payment history and security factors are considered; it is worth paying your premiums annually and in full and you may want to install security systems to the vehicle or at least keep it in a garage overnight.
With the recession showing little sign of abating, second-hand vans offer an economic and practical way to continue to operate your business.