LCV Remarketing - Finding the Change 'Sweet Spot'

"Whilst new van sales are on the slide, interest in used product remains particularly strong, the key issue however is a shortage of quality stock." Observes Eddie Thomson, Group Sales Director at SMA Vehicle Remarketing

A review of activity, both online and across SMA's 5 auction centres clearly identifies strong demand for quality LCV vehicles in all categories. However, there is a real shortfall of this stock at the current time. Thomson notes;

"Across the fleet market, operators have been extending the lifecycle for LCVs during the economic downturn. Encouraged by enhanced reliability, extending the lifecycle of vans has been an attractive option for some. Vehicles in the 2 - 4 age category that are actively being sought by used buyers, have been in noticeably short supply. What we have seen is older, higher mileage stock. We are successfully finding a market for this type of product, with prices appropriate to age/condition. However, prices achieved are starting to have us increasingly helping customers to work on the timing of product sale.

"Where we are actively working to help our fleet clients is to identify the 'sweet spot'; the point at which vehicles should be coming to market before prices dip significantly. Our assessment right now is that for many operators this point needs to be brought forward, especially because of the array of offers available in a depressed new LCV market."

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Our grading system is changing

NAMA grading has been developed to provide a long awaited industry standard grading scheme to be used across all auctions within the UK.

We have now introduced NAMA grading across our sites, and over the coming weeks you will notice more vehicles being offered for sale displaying a NAMA grade. These grades are easy to identify as they are 1,2,3,4,5 and U in place of the SMA grades A,B,C,D and E.

Please make sure you have familiarised yourself with the grades. We will still produce condition reports providing additional information for each vehicle as we always have.