Healthy bounce for used van market

Despite the dismal attempt of a British summer (once again) and the news that unemployment is hitting near 3 million there are encouraging signs that things in the UK are looking up. For the second straight month the FTSE has rallied and the majority of UK’s companies have released financial reports stating growth for the first time since the recession hit. It appears that governments spending spree is finally paying off as the green shoots of a growing economy are starting to bloom.

One of the hardest hit sections of the economy has been the car market. Car makers and dealers across the world have struggled under the oppressive weight of a global downturn, but signs show that the market is recovering. America’s ‘cash for clunkers’ scheme has been so successful that manufacturers have had to increase production to cope with the demand. The UK’s car scrappage has also been successful, sales rose by 2.4% in July and over 155,000 new cars have been ordered thanks to the government scheme.

The used vans market has also seen a recent increase and experts suggest that the van market is back on the road to recovery. Many van manufacturing companies such as LDV and VW have struggled with the recession, but the bad times appear to be fading as some of the UK’s biggest auction companies and sites report a large increase in the amount of vans for sale. Manheim Auctions’ latest monthly Van Market Analysis reports for July ‘09 that the average wholesale used van sale price is down just 0.6% compared with the previous month.

The car and van hire market has also bounced. A report issued by the BBC stated that a large portion of British tourists have been unable to get a rental car abroad due to recent increased demand. The majority of car hire companies expected a disappointing year for tourism and did not retain large enough fleets which has led to the vast shortage in rental cars available and a series of disruptions.