The introduction of Clean Air Zones from 2019 will see demand for used Euro 6 vans grow, keeping values high, says Shoreham Vehicle Auctions.
However, Alex Wright, the company’s managing director, is concerned that new Euro 6 vans will become increasingly difficult to source as manufacturers move their production into the left-hand drive economies that are starting to grow.
He said: “There will be a high demand for used Euro 6 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.
“OEMs have invested tens of millions in aggressive discounts and finance offers to drive sales 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 6 vans will 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.
“This change in market dynamics doesn’t take into account any potential challenges forced on UK operators by Brexit, or a potential strengthening of Sterling once Brexit goes live.”
Wright feels there will be a steady supply of used Euro 6 vans coming into the marketplace in 2018 and 2019, particularly from rental companies once they have begun defleeting their older Euro 5 vehicles.
However, he warns that after 2020 used prices could go ‘sky high’. Wright added: “An increasing number of operators will be forced to sell their Euro 4 and 5 vans that will be snapped up by operators unaffected by the legislation in regions like Wales, Scotland and the south west. Demand for Euro 6 vans will continue to increase in 2020 and beyond and prices will rise accordingly.”
