Motor auctions reported a “mixed performance” in the LCV market with concerns raised over the upcoming changes to Benefit-in-Kind tax treatment for double cab pick-up trucks in April.
The higher tax costs were announced in the Budget by Chancellor Rachel Reeves.
Following the Budget the Society of Motor Manufacturers & Traders raised concerns over double pick-up sales. It said sales fell -8.3% in 2024 and this looks likely to accelerate in 2025.
Isuzu UK is running a promotional campaign to push sales of pick-ups before prices increase as a result of changes to taxation announced in the Budget. Its BIK campaign is encouraging customers to buy D-Max pick-ups before the tax changes come into effect in April 2025.
From this date double cab pick-ups will no longer be classified as commercial vehicles ..
Separately, in the car market the National Association of Motor Auctions (NAMA) reported a positive outlook with a strong retail market with search activity up 5% on February 2024.
NAMA members have expressed overall satisfaction with the year’s start. The market has grown by 0.3%, with the strongest performance seen in vehicles priced up to £10,000.
BEVs continue to show slight weakness, down -0.2%, with some older EV models underperforming and newer EV models facing discount pressures.
Petrol vehicles are up 0.6%, with small petrol cars being the most in demand, while the supply of 3–5-year-old vehicles remains challenging. NAMA members also report good conversion rates for this time of year.
Paul Hill, spokesperson for NAMA said “Conversion rates remain strong for this time of year, though the LCV segment continues to show a mixed performance.
“BEVs continue to face some pressure, down -0.2%, while the supply of 3–5-year-old vehicles remains challenging.
“Overall, NAMA members are generally pleased with the year’s start. It is encouraging to see that the market is in a strong position, with forecasts for March and April also remaining positive.”