With the recession having had made a big impact on the spending habits of many motorists across the UK, more commercial vehicles drivers are opting for second hand vehicles in a bid to cut back on costs.

For the first time in three months, the value of second hand light commercial vehicles, (LCV) fell in March by an average of £71, according to figures from the British Car Auctions, (BCA).

The firm stated that although the prices are not at its lowest (which is £2,772), they are significantly lower than figures from January 2008.

A BCA spokesman, Duncan Ward stated that consumer confidence may begin to rise as more van insurance customers opt for the second hand vehicles.

He advised that potential buyers looking to purchase a second hand vehicle should act quickly as more people attempt to bag a bargain.

He said: "There is a lot more confidence in the used LCV market in 2009 and that is reflected in stronger bidding, higher conversions and improving prices."

As a result of the increase in second hand buyers, new van being made in the industry have suffered a big blow to in their sales.

New van sales plummet

When new van sales fell by 58 per cent in February, the Society of Motor Manufacturers and Traders (SMMT), called for the government to provide "direct, positive action to give people the confidence to buy now."

Paul Everitt, the chief executive of SMMT,said: "The UK commercial vehicle business is under intense pressure with the slump in UK demand for vans, and now trucks, a big issue for the UK economy. It is vital to stabilise buyer confidence soon."

He stated that "2009 will be a huge test for the resilience of our sector and of the firms that need modern, efficient transport to deliver a stable economy."

However, the SMMT have now predicted that new van registrations will hit a record low. According to research from the SMMT, the number of van registrations made over April this year has fallen by a more than 65 per cent.

In the UK, just 7,655 vehicles were made in April, in comparison to figures from April 2008. With such a low production number, UK van sales in 2009 are therefore forecasted to reach a "record low."

Everitt said: "UK commercial vehicle registrations continue to fall steeply reflecting slow sales over the last six months, but a few truck makers report an increase in enquiries.

"In many cases the price differential caused by the low value of the pound against the euro stifles potential sales. While we see the government's policy bringing some relief, confidence remains subdued. We see little evidence to indicate a quick recovery and expect a record low for year-end van and truck registrations."

"With the scrappage incentive scheme fully operational, industry is optimistic about the positive impact this will have on the market and on UK production facilities," he added.

"Despite the current difficulties, the UK must prepare for the return of global growth and government support for the industry is an essential part of the process."