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BUYERS CONTINUE TO SHUN HIGH-MILEAGE LIGHT COMMERCIAL VEHICLES
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Forget full service history, unmarked paintwork along with pristine interior condition, and a blue-chip company name in the V5 – the majority of retail customers continue to focus on mileage when selecting used light commercial vehicles, according to George Alexander, Editor of Glass’s Guide to Commercial Vehicle Values.
Where condition is good, yet mileage is high, it is causing real problems for vendors. Being unlikely to command a good resale price, these vehicles fall into the distress-selling category.
Alexander comments, “Many would argue that the overall condition of a van or truck is more relevant to its intrinsic worth than distance covered. However, what the odometer reveals about a commercial vehicle’s past life is an undeniably crucial factor in the sales equation.
“Currently, popular vans that have travelled less than 40,000 miles are good news, whilst between 50,000 and 75,000 there is every chance of a profitable sale for nice clean stock. Retail business is still attainable on the best older vans up to 100,000 miles, but above this point, customer resistance sets in.
“When the odometer reading is well in excess of 100,000, only the best examples of premium-brand panel vans will provide the trade with a reasonable profit. Consequently, most dealers no longer consider the hassle factor that accompanies high mileage to be worth the risk.”
Alexander concludes, “As rental and fleet vendors are the source of most late-year light LCVs, and with more lease contracts being extended in response to customers’ reluctance to buy new, an increasing proportion of 3.5-tonne vans could become un-retailable.”
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Appeared
in issue number 96 of CV
Dealer Magazine 05/01/2010
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