Average used van selling prices remain robust, performing ahead of the same period in 2021 and 62.2% stronger than pre-pandemic averages.
Manheim has reported its second strongest month of the year to date for wholesale LCVs, seven out of 10 units selling first time at its auctions across the UK throughout May 2022.
Demand remained high from fleet, OEM and rental customers at Manheim and average selling prices bounced back, improving by £510 during May compared to April.
But available stock reached new highs for age and mileage, mainly due to a widescale return of “pandemic-worn” vans to the market. LCV mileages reached an average of 88,679 miles on the clock – the second highest of the year – and were 65.2 months old. Compared to the same period in 2021, vans are on average three months older, and with 15,370 more miles on the clock today at Manheim
Euro 5 and 6 stock continues to sell well, with 59% of sales Euro 6 products, and 41% Euro 5 throughout May. Euro 6 vans average prices were up £323 but age and mileage reduced by one month and 3,966 miles respectively. Euro 5 prices also rose by an average of £56 compared to April, with age also slightly increasing by two months at 96 months, and mileage reducing by 3,217 miles to 114,915 miles on average.
But while the market continues to perform strongly, Manheim parent Cox Automotive is advising caution as both supply and demand are expected to fall.
Matthew Davock, director of commercial vehicles, shared: “With all the current headwinds facing the automotive sector, you can understand why caution remains the overall buzzword for franchise and independent dealers today. That said, improvements in the data for May demonstrate that the market is holding firm.
“We have seen LCV guide values decrease by 3.7% on average going into June at three years, 60,000 mileage LCV product; the largest single movement in a month for a decade and the third month in a row where we have seen LCV guide values reduce. It sounds negative but this should not come as a major shock, since guide value reductions were very much the norm during pre-covid times. Therefore, this is a sign that the market is returning to something resembling normal levels, in some respects.”
Highlighting just how much the market has soared in the current unprecedented times, Manheim’s average selling price was £105 stronger in May 2022 compared to May 2021, but with average mileage over 15,000 miles higher and average age three months older.
Davock summarised: “With the SMMT headlines showing a 25% reduction in new LCV transactions, it is highly likely we will see further shortages in the wholesale market during the months to come.
“While the wholesale LCV market has not had the buoyancy we saw last year, guide values reducing more in line with market conditions will help ensure it remains resilient during the summer period heading our way.”
