Why is There a Shortage of New and Used Vans in the UK?
We explain the causes behind van shortages across the country
Have you been struggling to get hold of a new or used van this year? You’ve no doubt felt frustrated at the lack of commercial vehicles available across the country right now.
In this article we explain why there is a shortage of new and used vans in the UK which has led to vans being so expensive, and how here at Loads of Vans in North Cheam, South London, we can help you…
New Van Shortage Explained
There are a number of factors as to why the commercial vehicle market has been so badly affected by the lack of new vans available in the UK. What we do know is that Coronavirus has a hell of a lot to answer for!
During the 2021 pandemic, car and van manufacturers struggled to get hold of semiconductors - an important component of any vehicle. So what is a semiconductor and why is the part so important? Well, in short, a semiconductor is a silicon-like material product that can conduct electricity. Semiconductors (also known as chips) are found in many tech-based products such as phones and computers.
Although semiconductors can be produced in mass volume, there are up to 3,000 semiconductor chips in a van - especially if it’s an electric vehicle. Due to the overwhelming demand for cars, vans, and electronic devices during the 2020 lockdown, has had a detrimental effect on semiconductor manufacturers who have been unable to cope with demand. Adding to the issue, many semiconductor factories are located in areas which have been hit the hardest by COVID-19 outbreaks and lockdowns, such as Southeast Asia.
Typically, van manufacturers don’t keep stockpiles of semiconductors and instead operate by ordering these chips as and when they need them. Due to what’s been dubbed the ‘semiconductor crisis’, many van manufacturers have halted the supply of certain makes and models, and in some cases, even temporarily closed their factories.
Although it’s not just the semiconductor crisis that has affected van production and the availability of new vans in the UK. Renault has been forced to temporarily shut three of its vehicle assembly plants in Russia as a result of Russia’s invasion of Ukraine, where logistics and component shortages have caused big issues.
Let’s not forget the impact that Brexit has had on the production of new vans too. Supply issues and rising material costs have also affected raw materials such as rubber and metal, also vital to build vehicles.
All of this has led to a large majority of manufacturers suspending the sale of new vans, with many being unable to fulfil deliveries until at least 2023.
Used Van Shortage Explained
Although it’s not just the new van market that has been affected in recent months, as the used van market has experienced similar shortage issues too. So why is the used van market being affected by shortages too? Well, there are a number of reasons why this is the case…
Of course, it goes without saying that due to the lack of new vans being available, consumers have turned to the used van market to seek alternative solutions. Regardless of age or mileage, used vans have been in such high demand that in 2021, many commercial vehicles sold for at least 20% more than their value which led to record-reaching prices.
Used Specialist vans such as dropsides, tippers and Lutons have had the last laugh by fetching thousands more than the true retail price. These are certainly unprecedented times and there are no signs of things easing just yet.
Are Electric Vans Affected by the Semiconductor Crisis?
The sale of electric vans soared in 2021 and demand in 2022 continues to be equally as high - the electric revolution is most definitely here! The rising cost of fuel and the introduction of Clean Air Zones in major cities across the UK have led to consumers opting to ‘go green’ instead.
However, no matter how popular electric vans have become, they, unfortunately, are not exempt from the semiconductor crisis either. But, there is more of a glimmer of hope for EV models compared to their combustion engine counterparts…
The lack of available supplies has forced many manufacturers to prioritise the little resource they do have to the most profitable models - in this case, electric vans. Companies such as Volkswagen have ceased the production of all but electric models in order to meet emissions targets outlined by the UK government.
Purchase a New or Used Van at Loads of Vans
All is not lost! If you’re looking for a new van or a used van, then you can rely on Loads of Vans in North Cheam, South London, for your next commercial vehicle. Whether it’s a small van for your start-up business or a fleet of large vans for your established company, discover the range of models in stock right now.
If you need a commercial van, then make Loads of Vans your first and only stop. Secure your van now and avoid long wait times; despite the lack of stock and high prices elsewhere, our vans are discounted and available straight away. We also stock some of the best electric vans for sale on the market, so we can help you make the transition to an EV future.
In stock now, our Electric Van deal of the Week is the Nissan e-NV200 - this workhorse of an electric van is available and ready to drive away today. Call us today on 0208 644 4000 to secure yours before they go!
Have you considered leasing a van? Van leasing can prove much more cost-effective than purchasing the vehicle outright and has many other benefits too. Leasing a van from us is also a tax-efficient way of writing off the monthly cost, as it’s classed as an ongoing expense. Take a look at our Benefits of Leasing a Van for Your Business post to find out more.
Unlike many of our competitors who are based solely online, the Loads of Vans dealership is open 7-days a week for your convenience. We have a team of dedicated van specialists available every day, so visit us to discover the best value van for your business. You can also explore all of our used vans stock online at any time, including our too-good-to-miss New Van DEALS, where you can save thousands of pounds on a van.
As an established 100-year-old family business with several new franchises and access to many makes of vans, you can trust the Loads of Vans team to provide you with expert help and advice.