Manheim UK has seen its strongest-ever start to a year, with 22,344 vans and trucks defleeted through its auctions and networks in Q1, as noticeable fleet vehicle replacement cycles took shape.
Overall arrivals were up 29% for its commercial vehicle division and volume levels increased further throughout March, representing a 19% increase vs year-on-year statistics visible through the auction lanes.
Euro5 LCV products levels continued to rise as stock that has been in continuous lease extensions now started to be defleeted in large numbers, representing every four in 10 vans during quarter one.
Demand remained very positive and the quarter finished in a strong position for used LCV values, standing at £9,064 on average; up 46% on pre-pandemic average selling price statistics.
A total of 271 different vendors during March at Manheim witnessed strong first-time conversion rates, with 85% selling first time in the month and this was matched with an average days to sell figure of just nine days, representing a four-day reduction versus 2022 averages.
That’s despite vast changes in age and mileage profiles for wholesale stock, which hit record levels. The average age rose to 81 months – up 24 months on pre-pandemic levels and a further six-month increase on February statistics. This was matched with mileage increases, with average mileage being recorded at 84,379; 18,000 more miles compared to pre-pandemic market averages and an increase of 3,341 miles on February.
The strong demand for used vans in March and Q1 was mirrored across the new market for van registrations, which rose by 17.3% to 47,634 units in the third month of successive growth, according to SMMT stats. Year-to-date, a total of 87,272 LCVs were registered in the first quarter of 2023, up 17.4% against Q1 last year but still 15.1% down on pre-pandemic 2019 averages.
Matthew Davock, director of commercial vehicles at Manheim, explained that while the market was seeing signs of positivity, an influx in supply brings more challenges.
“This increased positivity around vehicle supply is certainly bringing some challenges as stock profile changes are affecting many dynamics, such as buyers needing to change vehicle profile buying habits, stocking much older and higher mileage vans. This is matched with increased time and cost getting these vehicles to retail standard.”
He concluded: “As we move into the second quarter of 2023, we do expect some seasonality factors to play much more of a part as retail activity will become more challenged around holidays and bank holiday extended periods. However, with the overall wholesale levels still being generally short, we still expect the overall average selling price and key indicator performances to have a positive impact.”
