The latest forecasts point to an interesting trend in the light commercial vehicle (LCV) market. By the end of 2025, new van registrations are expected to fall by more than 11%, while used transactions will sit just shy of one million units. That’s a near-record figure, down only slightly from last year, but still almost 12% higher than pre-pandemic levels. So, what’s really driving this shift towards used vehicles, and what does it tell us about the current business landscape?

Economic Pressures: Cashflow and Rising Costs

For many SMEs, the financial climate remains tough. Rising costs, squeezed margins, and ongoing uncertainty mean big-ticket purchases like new vans feel harder to justify.  A recent survey we sent to our customers showed cashflow remains the number one concern for smaller businesses, so it’s no surprise that buying used offers a more manageable short-term solution. Instead of stretching budgets for a new model, many are opting for vehicles that deliver what they need at a fraction of the upfront cost.

The Post-Covid Market Shift

Before the pandemic, the new vehicle market was more buoyant and manufacturers were offering competitive deals, supply was steady, and businesses had strong incentives to buy new. But the Covid years disrupted supply chains, created order backlogs, and inflated prices. Even as supply has recovered, the “sweet spot” of strong discounts and abundant stock hasn’t returned in the same way. This shift has made the used market not only more attractive, but also more reliable in terms of availability.

The Electric Question

Electric vans are another complicating factor. Values remain volatile, and while the transition to EVs is a long-term priority, many businesses still view them as a costly gamble compared to proven petrol and diesel options. This uncertainty nudges more buyers into the used market, where they can secure vehicles that meet their needs without committing to a technology they’re not yet comfortable with.

The Role of Finance: An Underused Solution?

One area that could rebalance the equation is finance. By spreading costs into manageable monthly payments, SMEs could gain access to new vans with fewer maintenance headaches and the reassurance of a solid warranty. In a climate where uptime is critical and repair costs can quickly erode margins, the case for finance-backed new vans becomes more compelling. The challenge may be one of awareness.

Do enough businesses truly understand the options available?

Other Possible Drivers

• Fleet Strategies Are Changing: More organisations are diversifying into mixed fleets, where used vans play a role alongside new purchases to optimise budgets.
• Sustainability Perception: Some SMEs see buying used as a form of recycling, stretching the lifecycle of vehicles rather than adding more new production to the mix.
• Regulatory Uncertainty: Questions about future emissions rules, clean air zones, and EV deadlines may be causing some businesses to delay committing to brand-new stock.

The Big Question
The data tells us the used market is thriving, but the underlying reasons are complex. For SMEs in particular, it’s a balancing act: immediate affordability versus long-term reliability, today’s savings versus tomorrow’s risks. Perhaps the real opportunity lies in helping businesses see finance not just as a cost, but as a tool to unlock newer, more dependable vehicles that safeguard their operations.

What do you think? Is this surge in used vans simply about saving money, or is it a deeper shift in how businesses view risk, sustainability, and long-term investment?