It was well circulated in 2021 that there was a new car shortage due to manufacturers struggling to secure semiconductors. This shortage has not only affected the availability for cars, but vans too. The shortage of semiconductors first occurred due to the closing of many factories during the pandemic, with many employers struggling to retain their staff. As well as this, semiconductors saw an increase in demand due to home workers needing laptops and furloughed employees ordering Xbox and Playstation game consoles for that much needed something to do at home. All of these devices require semiconductors, leading to a sudden surge in the market.
Some van manufacturers have predicted that the parts needed to continue efficient new van production may not be available until the end of 2022/the start of 2023. So if you are in the market for a new van there may be a long wait, and even if you find one available to buy the price may be painfully expensive. And as a knock on effect, second hand vans have risen in price too, all because of the huge market demand.
The delays to new van deliveries are driving van values with Commercial Fleet recording that “The average selling price of a three-year-old medium-sized van, with 60,000 miles on the clock, for example, is 58% higher today than it was at the start of 2020.” This has seen that older vans with more mileage are holding onto their value for longer meaning that individuals and businesses have cottoned on that they can sell these older, well used vans for a higher price.
Another reason vans are seeing a shortage recently is because of the rising van conversion trend. Due to the last years lockdown rules and travel restrictions many turned to buying and converting vans into mini motorhomes, as for a long time the only place we were allowed to holiday in was the UK and these motorhomes were the perfect way to holiday locally. These vans are now being sold on again now that everyone is returning to work, however buying one of these means that you will have the added expense of converting it back to a regular van, which for a lot of people is an expense and hassle that is simply not worth it.
Although this trend kept a lot of people occupied during the lockdown period it also meant that those who rely on vans for their trade found it hard to get their hands on one. We all know that during lockdown we also saw a rise in online shopping. This rise in online orders meant that more vans were needed for delivery, Charlie Duffield from inews stated that “In total 191,513 new vans were registered from January to June, marking a 76% increase in sales compared to the first half of 2020”, all due to this rise in demand.
It is hard to say for certain when the prices for new and used vans will decrease again, but something to consider is hiring instead of buying. Especially if you find it financially unviable to buy at an outright cost at the moment. Have you considered contract hire instead of buying? If your answer is yes to both of these questions then get in touch with us on 01603 426487 and we can help provide you with a van.