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December 15, 2022 at 10:53 AM

This forecast looks at expected growth over the next five years, key challenges and what it means for your business. As the cost of fuel, the rising energy costs and the ongoing staff recruitment dilemma continue through from 2022 to 2023 how can you optimise your business for survival? We'll dive into how hiring or purchasing a second-hand van or minibus for sale may be the answer to keeping your business afloat.

A Current Look at the Market

September 2022 saw a 10.8% growth in Britain's light commercial vehicle market. Even though order books have been strong throughout the year, September represents the first month of growth for registrations in 2022, owing to supply disruptions.

The month before that, which was August, there were just over 15,500 new light commercial vehicles (LCVs), such as pick-up trucks and vans, registered in the country. When compared to a year before (August 2021), van sales UK equated to more than 20,000, so the reduction in registrations is 24.6%. This means that up until September, sales have decreased each month from 2021.

Expected Growth in UK Van Market in 2023

So will businesses still struggle to source vehicles in a year, and how will registrations change in 2023?

Supply had been expected to improve by now, but it appears that constraints will persist. Industry experts state that supply shortages for new cars will persist through 2023, and component shortages, coupled with the war in Ukraine and the recent COVID-19 shutdowns, have slowed production.

Cox Automotive, for instance, lowered its forecasts for the 2023 new car market by 7%-15%, citing continued headwinds for the UK auto industry. They now expect 2023 to end with 1.68 million registrations, a decrease of 27.1% from pre-pandemic 2019. As compared to the previous forecast, this is a 10% downgrade.

In 2023, the supply of new cars should improve in the second half as the production of semiconductors increases and imported parts replace those previously made in Ukraine. However, even if the component supply issues were resolved immediately, there would be a lengthy recovery period.

That’s why industry experts expect new vehicle supply to remain low until 2024. Given the economy's teetering on recession, some predict lower demand for new cars next year, despite improved supply, and recent registration increases have likely been fulfilling long-standing orders.

So what does this mean for businesses? In order to stay afloat during this time and survive the upcoming challenges facing the new van market, businesses will need to get creative and adapt.

Used vans are a great solution in this situation.

Used Van Market

During the pandemic, the used van market boomed. The demand for cars outstripped the supply as people opted for safer alternatives to public transportation. Used-car markets also prospered because of the reduction in new-car supplies.

After rising for the first time in 2022, used van prices have returned to buoyancy in the UK in Q3. In the wake of a gentle softening of used LCV prices across the market in the first seven months of the year, used commercial vehicle prices rose in the third quarter.

According to analysts, second-hand van sales will likely remain unchanged until stock levels begin to improve. This results in a pressured marketplace and buyers lacking choice, with vendors achieving record sales.

Why Purchase a Used Van for Your Business?

Vans are crucial to the smooth operation of many businesses. If your company is growing, you may want to consider adding another van or purchasing your first vehicle.

It may seem logical to buy a new van, but buying a used one has many advantages. Below are some benefits of buying a used car or keeping an eye out for a minibus sale.

Cost reductions and a slower depreciation rate

Whether you're just starting or want to reduce expenses, used commercial vans are a more affordable option than new ones. Most of the time, if you have already chosen a specific make and model, there will be a used car that fits your budget, often with better specifications.

Moreover, in the first year, the value of a vehicle will depreciate rapidly, making it unfavourable for short-term owners. So instead, choose a used van in excellent condition. If you resell it later, you will lose less money.

Several options to choose from

Vans come in a variety of sizes and shapes. It is essential that a used van seller offers a wide selection of vehicles, ensuring great quality at an affordable price. With a reliable used van seller, you’ll have a wide range of options to choose from, and you can trust their expert team to help you find the right one.

Various financing options are available.

Used vans come with a range of finance options, such as lease and hire purchases. This means payments can be spread out in accordance with your budget and business needs.

A reduction in waiting times

If you are buying a van for your business, you may need it immediately. This means that the time it takes to deliver a new van can have a negative impact on your business.

In most cases, if you need a vehicle urgently, there will be a used option in the showroom that can be driven away immediately.

Assurance of quality

Quality checks are performed on approved used vans to guarantee their quality. When buying a minibus for sale from a reliable seller, you'll have complete satisfaction with the quality of the vehicle.

Popular Used Vans

Recent reports show that buyers have primarily chosen vehicles based on what they can afford that satisfy their business needs.

However, double cab pick-ups continue to be favoured by buyers due to their robust versatility, and models such as the Mitsubishi L200 and Ford Ranger remain consistently desirable. Towards the end of the year, when delivery activity ramps up towards Christmas, small commercial trucks and 3.5-tonne panel vans are expected to still be in demand. Ford Transit Connects are also likely to remain popular in the face of seasonal demand for increased fleet sizes.

Invest in Your Next Van Today

Are you looking for the best van for courier exchange or one that can meet your unique business needs? At Big Van World, we offer a variety of used commercial vans. If you would like to know more about our selection or the benefits of buying a used commercial vehicle for your business, don't hesitate to contact us.


Category: Blog