Concluding our overview of BVRLA‘s look-back at 2011 and peep into 2012, we look at what effect the (predicted) demise in the availability of used vans will have on the new and lease-hire market, discuss whether 2012 will be the year that electric vans eventually take off and view a summary of how tax amendments for company fleet vehicles and new measures for tackling spurious injury claims under consideration by the government will affect the prices of road-tax and (eventually) cheapen van insurance costs – but maybe not this year.
Used van prices to hold their market value
The beginning of last year saw a massive influx of used LCVs originating from the fallout of the 2010 economy collapse, which saw many large operations go under. Despite the unprecedented volumes, the actual average price across the range only fell by 1.3%, expressing the demand driven by those organisations conscious of their bottom line looking to save more money by buying second-hand over new, with the bonus that used vans equate to cheap van insurance premiums, as a rule of thumb.
There will be fewer used vans available this year as a result of a steadier year in the economy in 2011, but firms in the UK are still very aware that we are not out of the mire yet and will be worried about investing large portions of any profit into new vehicle fleets.
Manufacturers eyeing the rental market for growth
The beneficiaries of this unwillingness to invest in new commercial vehicles against the backdrop of the size of the diminished used vehicle pool will undoubtedly be the lease-hire market; manufacturers from both Europe and Asia have foreseen this eventuality.
According to John Lewis, BVRLA CEO, manufacturers have increased their allocation – or will return to this sector – for 2012. Not only is this for the commercial sector, but it is also expected the ‘urbanites’ will look to leasing with a lack of capital in their household budget.
Will it, won’t it? is the question hanging over the electric van market, as in: will people sacrifice capital in the name of reducing their carbon footprint? With the LEZ now in place in London, it may make commercial sense there; the possible reduction in van insurance premiums due to a reduced top speed may also attract new customers, but the price packages are complicated and will prove expensive anywhere other than the capital.
2012 should also see further clarification of company vehicle tax issues, with more and more vehicles arriving on the market that are emission-conscious. The less cynical may say the government is revamping tax to help out the business sector, but in reality, the tax office is seeing less revenue from this levy than they once were.
Whatever your situation, it is imperative that the one aspect you do not overlook in 2012 is your fleet insurance running costs. Even though Mr. Cameron is cracking the whip when it comes to personal injury solicitors referral fees claims derived from staged accidents, they may not take affect this year. So for this year, compare your van insurance quotes right here, right now.