Uncertainty about the UK economy and manufacturers mandating EV adoption are both driving fleets away from the new LCV market towards used, according to Shoreham Vehicle Auctions (SVA) MD Alex Wright.
Citing Society of Motor Manufacturers and Traders (SMMT) data showing new LCV sales were down by 12.1% in the first half of 2025, Wright said fleets were experiencing a lack of economic confidence.
Wright said: “New LCV sales are a barometer of how companies are feeling about the economy. The fact sales are falling tells us how they are feeling and until they are more optimistic buying new LCVs will not appear on their radar anytime soon.
“That spells good news for the used market as more companies will look to buy a used instead of a new van.
“That should keep demand and prices strong for used vehicles for the rest of 2025, and we are already seeing some LCVs make £1-2k above book when they go under the hammer.”
Wright added that some manufacturers were insisting fleets buy new electric vans to help them meet their ZEV mandate targets, which was a particular issue for small to medium-sized operators.
He said: “This mandated approach by OEMs is putting off operators from buying new vans across the board as the majority cannot currently justify adding electric vehicles to their fleet as they will compromise rather than add value to their operations.
“Until OEMs change this strategy then smaller fleets will continue to buy 12-18-month-old diesel vans at auction that are predominantly being entered by the big rental fleets.
“SMEs are also buying used two to three-year old vans currently rather than signing up to expensive new vans on finance as they are uncertain how the economy will affect their businesses in the coming months.”
