Small businesses are turning to used vans rather than investing in new models due to their concern over the recent General Election and the potential outcome of Brexit.

SMMT figures show new van sales down 5.3% to 26,982 year-on-year in May and lagging behind 5.0% in the first five months of the year. Alex Wright, managing director of Shoreham Vehicle Auctions, says  expanding smaller companies are spending £10,000 to £15,000 on a good quality used van rather than committing £25,000 to £30,000 to buy or finance a new one.

He added: “This spells good news for the used market as the demand for one to three-year-old used LCVs is set to grow over the coming two years until the true results of Brexit are realised.”

He believes that the “light commercial market is well tuned to the current economy” and argued factors such as low interest rates, higher inflation and a falling Pound would also encourage SMEs to switch from new to used in order to better manage their risks.

“Cashflow is king and they are able to change their purchasing decisions swiftly to protect their cash in the bank while not preventing them growing their businesses.”

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