The company’s data shows an average age of 63 months, while average mileage is 2,066 miles short of its February peak of 86,602.
April also saw a seasonal spike in de-fleet volumes, which is typically seen 60 to 90 days after each plate change, with Manheim recording the first positive volume sold variance in 19 months, up 6% year on year.
Manheim warns that close scrutiny is required to understand the market and segment movements. When looking at the latest monthly figures in more detail, it is at segment level that the full picture emerges. Comparing the three major volume segments between March and April 2013, car-derived vans are two months older with 3,000 more miles; small panel vans are five months older with 7,300 fewer miles; and large panel vans (over 3 tonnes) are four months older, with 7,000 more miles. The 4×4 sector also broke a new record in April; recording the oldest and highest mileage vehicles seen since Manheim Market Reporting began in 2006 (71 months and 79,009 miles respectively),
Looking specifically at small panel vans, which remain the most favoured vehicle segment by SMEs, there has been a considerable profile shift in the last 12 months. Since April 2012 average age has risen by six months, yet average mileage has remained fairly stable, increasing just 2,325 miles. The average selling price remains stable, proving that demand for these vans remains strong. Interestingly, 63% of all small panel vans sold by Manheim in April were over 60 months old; reflective of both contract extensions and segment maturity.
In April, large panel vans (over 3 tonnes) broke a record in terms of average mileage, with the highest reported since 2006 at 111,772. In the space of one month, average mileage jumped 7,070, which is reflective of smaller sample size and the increasing influence of older, higher mileage extended product. Despite this rise in age and mileage, the average selling price increased by £41 month on month, reflecting both the lack of duplicate product and strong underlying demand for this workhorse segment.
James Davis, head of commercial vehicles at Manheim, said that Manheim’s data shows that lower de-fleet volumes are playing havoc with overall market headlines.
He commented: ‘In some segments we have seen significant double digit percentage variances in volumes sold by age banding. This reflects the changing de-fleet mix from daily rental, flexi-rent and end of lease sources.'
Davis added: ‘Of late, there is a real issue with duplicate product in the market, specifically in the small panel van segment. If vendors reflect damage and duplicate models when setting reserves, accepting that other vendors are selling this product behind book values, then they will make their own success. I would urge caution around the bank holidays. At this time of year we will experience the usual seasonal retail rollercoaster. Conversion rates for duplicate product will suffer as dealers have no need to replace stock in times of slow retail activity. In today's seasonal marketplace, dealers are reporting varied retail activity by region. Many urban pitches are claiming the briskest levels of activity. Considering the previous 13 months, average selling price has been stable; I therefore believe wholesale van values have hit their glass ceiling.’
