Average LCV prices rose in July despite a rise in volumes, putting the market in a strong position for challenges over the coming months.
New figures from Manheim show selling prices increased by 8.8%, or £802 per unit sold, last month, rising to £9,805. Meanwhile, total volumes sold were up by 17% and first-time conversions improved by circa 6% with three out of four (73.9%) vans selling first time. There have also been notable movements in guide values going into August which should continue to help drive the market and demand.
It marked the strongest month for LCV sales since April 2022 and came as Manheim relaunched its physical LCV auction programmes at Shepshed, Washington and Colchester. The company has reportedly witnessed over the return of over 400 buyers back to its physical auction halls, with its blended approach to physical and online Simulcast auctions being positively received by buyers.
Driving LCV demand are chassis products, with dropsides, lutons and tippers in demand at the right price. Minibuses continue to perform well, with Manheim reporting some eye watering prices still being paid for the right specification wheelchair accessible vehicles.
But 4x4s went the other way, with demand weakening 4%. This comes as no surprise as demand for some late low-mileage pickups has been weak over the last few months with high fuel costs and many watching their finances.
Matthew Davock, director of commercial vehicles at Cox Automotive, summarised performance: “The market positivity we saw in June continued throughout July, putting the market in a strong position as we head into the latter few months of the year. All insight suggests that volume shortages could be on the way towards the end of 2022 as new LCV registrations continue to hinder de-fleet returns. We also know that the cost-of-living crisis will impact available expenditure as some buyers will tighten their belts. The market looks in a good position to ride out these challenges.”
Year-to-date figures show the challenges for the new van market are impacting demand, with registrations down 24.2% between January and July 2022, equating to 52,000 fewer vans. Small CDV, pickups and 4x4s were down by almost 45% compared with the same period in 2021, amid ongoing global supply chain delays.
In contrast, the YtD typical selling price for used vans at Manheim UK stands at £10,054, with average age and mileage figures of 64 months and 85,748 miles recorded respectively. Vans for the first seven months of the year made on average £388 more than the same period in 2021 and mileage and age profiles today are significantly higher.
Additionally, there was an increase in the number of used vans being advertise, with more than 46,000 LCV units being promoted via retail alone. This represents a 32% increase on the same period last year, due to greater choice and availability. Retail prices bands continue to be the highest on record with 62% of the LCVs being advertised priced £15,000+ or above.
Davock explained: “The volume increase is significant given all the above new market factors and when you compare this number with the cost-of-living factors, surging fuel prices and concerns around a lack of financial support, it’s not surprising this is impacting overall retail days to sell and consumer confidence as a whole.”
