Light commercial vehicles with air-con outperform those without it on the used vehicle market by a considerable margin in terms of values achieved, performance against guide values and auction conversion rates.
Values can be up to 40% higher, data published by BCA indicates.
While air-con for cars is commonplace, it remains an option for LCVs and is not widely fitted across the van parc. However, this makes LCVs with air-con highly desirable at remarketing time. Values typically outstrip standard vehicles by a considerable distance – well over £1,000 on average, according to BCA’s extensive data.
Based on the scale charge, a driver paying 20% tax would have a tax bill of just £686 a year, compared to £1,372 for the 40% tax payer. There is also a flat-rate van fuel benefit charge of £655 for the same tax year.
A comparable company car will have a BIK tax bill many times greater than a van, with only 50% of the VAT on leasing rentals being recoverable and NIC being paid on the vehicle’s full scale charge based on its PIID value.
As a result, some companies may be tempted to “acquire a van
and then re-purpose it with rear seats, for example, while still claiming it as
a van and paying the appropriate van tax rates”.
“While it is to be expected that air-conditioning will add value in the used LCV market, the real uplift in value now appears to compare very favourably with the front-end costs of specifying this option. LCVs with air-conditioning are highly valued by professional buyers at BCA, because these are the vehicles their retail customers want to buy. These figures underline that up-speccing commercial vehicles at acquisition time can deliver real benefits to van operators. A better specification will make a van more desirable and saleable. For vans that are doing longer distance delivery work, or in a tradesman’s vehicle that doubles as the family transport at the weekend, air-con is exceptionally appealing.”