Delivery time danger for Euro VI vans

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The introduction of Clean Air Zones from 2019 is likely to increase demand for used Euro VI vans and delivery times for new models, Alex Wright, the MD of Shoreham Vehicle Auctions believes.

“There will be a high demand for used Euro VI vans from 2019 as operators look to enter our cities without incurring massive fines, but my biggest worry is that the supply of new vans will become more restricted,” Alex Wright, the MD of Shoreham Vehicles Auctions, believes.

He explained:  “OEMs have invested tens of millions in discounts and finance offers in the UK in the past few years.  When you have other European economies that are growing and where demand for new vans is high, then surely they will redirect their marketing money away from the UK.

“That will mean prices of new Euro VI vans start to creep up, and UK operators will be faced with longer new van lead times as new stock becomes more restricted.  They may even restrict supply to high discount high volume sectors of the market.”

He added that his forecast didn’t take account of any potential challenges arising from Brexit, or a potential strengthening of sterling.

He also warned that the introduction of Clean Air Zones across more than 30 local authorities would increase demand for second-hand Euro 6 vans, leading to price increases after 2020.

“An increasing number of operators will be forced to sell their Euro IV and V vans that will be snapped up by operators unaffected by the legislation in regions like Wales, Scotland and the South-West,” he said.  “Demand for Euro VI vans will continue to increase in 2020 and beyond and prices will rise accordingly.

“Just as we think the used van market has reached its ceiling, something like this happens. With the post-Brexit UK economy likely to grow it could be a major challenge for SMEs looking to buy used van stock to support the growth of their businesses.”