8:20 am, September 10, 2026
Here at Car Dealer HQ we spend a lot of time writing about the used car market but there is one section of the motor trade that often gets overlooked – vans.
While used cars grab the headlines, the second-hand van market can often be overlooked, despite the major opportunities it holds for dealers.
Experts say the sector offers stronger margins than cars, with one van able to make dealers the same return as return as several used cars.
However, if car dealers think that moving into the used van market will be easy, they should think again.
Specialists say that LCVs require more complex preparation, with a customer base that needs its vehicle to earn money from day one.
Tom Roberts, reviews editor for commercial and leisure vehicles at Autotrader, says that dealers need to understand one fundamental difference: A van is usually a ‘working asset’.
‘The used van market is more closely tied to business need than personal preference,’ he told Car Dealer.
‘Car buyers often weigh up styling, comfort, family use and specification, whereas van buyers are usually focused on whether the vehicle can do the job: payload, load volume, fuel or electricity economy, reliability, maintenance history and overall suitability for their trade or fleet.’
Despite this, some dealers have reported a closing of the divide between used can and van customers.
Keith Hardy, operations director at London van dealer Auto Capital, says there has recently been a ‘massive surge’ in consumers buying commercial vans and double-cab pick-ups for lifestyle rather than work purposes.
‘Modern van specifications match top-tier passenger cars with plush interiors, high-end infotainment, and driver aids, so families and outdoor enthusiasts are making the switch,’ he said.
‘And let’s face it, a pick-up or a combi van is just so much cooler.’
He added: ‘Car boys look at the gross margins on a panel van and think it’s easy money, but the prep and B2B customer demands are completely different.’
A bigger gamble
While used vans can offer attractive margins, Hardy warns that dealers should not mistake high values for easy money.
He says that it is crucial to buy well, with dealers often left fitting the bill for underlying mechanical and electrical problems that can often be missed by auction inspections.
Auction buyer fees and transport can also add between £400 and £1,000 per vehicle before preparation work has even been taking into consideration.
And when it does come to prep, retailers should be on the lookout for heavy commercial wear, including load areas, ply-lining, metalwork, roof racks, tow bars and racking systems.
‘Buying commercial vehicles at auction is a far bigger gamble right now than buying cars,’ Hardy told Car Dealer.
‘Once on site, commercial prep costs and workshop turnaround times are much higher than cars.
‘If an LCV sits in your workshop for three weeks waiting for parts, holding costs will eat your profit margin alive.’
Elsewhere, clean-air rules have also had a major impact on the market in recent years, making older stock much less desirable than it would have been in years gone by.
Roberts says dealers need to understand where a van is likely to be operated before taking on older diesel stock, particularly if the target customer is likely to work in London or another clean-air zone.
He said: ‘Clean air zones and ULEZ requirements remain an important consideration.
‘Vans that do not meet relevant emissions standards can attract charges when operating in affected areas, which can make older non-Euro 6 diesel stock harder to sell to buyers who regularly work in London or other clean air zones.’
What about EVs?
Much like in the car market, the transition to electric vehicles is a hot topic for used van dealers.
Roberts says the ZEV mandate is pushing more electric LCVs into the market, meaning retailers need to be aware of rapidly advancing battery and drivetrain technology.
‘Used e-LCVs typically struggle on the secondary market as van battery and drivetrain technology improve at speed,’ he said. ‘
‘But there are some fantastic electric vans coming onto the market now.’
Hardy meanwhile, says the challenges around electric vans are slightly different from those seen in the used car market.
‘We don’t necessarily need more range like most people say,’ he said. ‘The reality is we need better infrastructure and more charging points.
‘We need more government incentives and grants the exact same way they used to incentivise around 2016 – free Congestion Charge, free road tax, free or very cheap parking spaces, and cheaper charging points and subscriptions.’
What happens next?
Looking ahead, Hardy expects a new wave of Chinese brands to make their presence felt more significantly.
Over the next 12 months he says a clearer split is likely to develop between between established manufacturers and the Chinese brands, with legacy manufacturers such as Ford and VW putting more of a premium on quality.
The dealer is also backing diesel vans to retain strong residual values, with fewer OEMs concentrating on the fuel type as part of a wider shift towards electrification.
He said: ‘We are going to see a clear strategic split between legacy players and incoming Chinese brands, but with a twist.
‘Established manufacturers like Ford and VW know they can’t compete purely on rock-bottom entry prices, so they are focusing heavily on premium quality.
‘However, over the next 12 months, we will actually see legacy manufacturers and dealer networks like Ford start to stock, retail, and warranty some Chinese brands such as Maxus, simply because they need a cheaper product alongside their premium line-up.’
For car dealers considering entering the van market, the message is simple: There is money to be made if you commit fully.
Dealers that understand the stock, have the workshop capacity to turn it around quickly and take the time to understand what their customers need could find the sector offers a real opportunity.
As Hardy puts it: ‘No matter the news about the motor industry, it’s not going anywhere. However, it is absolutely the survival of the strongest.’