Used LCV prices rose by 11% in January to an average of £8,210, according to Aston Barclay.

The auction firm said that prices rose compared with Q4 of 2022 amid increased wholesale demand, as many dealers decided to run down stock in December, and more SMEs were looking to buy an additional or replacement van for their business.

Prices increased despite the average age and mileage of vehicles rising from 68 to 70 months, and 102,000 to 108,000 miles respectively.

Aston Barclay believes the used LCV market is now set at its ‘new normal’ until 2024 as restricted production volumes mean many new vans ordered now won’t be delivered for at least 12 months.

Aston Barclay head of LCV development Danny Healey said: “Despite the rising cost of living and a weaker economy, SMEs are still replacing or growing their fleets, just in smaller numbers than in previous years.

“The restricted supply of new LCVs continues to influence the used market with leasing companies extending customer contracts and rental suppliers retaining their vehicles for longer. Demand continues to outstrip supply.”

According to Aston Barclay’s desirability index, there is currently most demand for medium and large panel vans and four-wheel drive pick-ups – the latter influenced by seasonal factors.