Print

Posted in:

Q3 brings strongest quarter of the year for buoyant LCV market

Manheim recorded its highest volume of the year during quarter three as high volumes met strong buyer demand.

The partnership between Zenith and Manheim will operate until 2021
Manheim saw strong sales performances across its national CV auction network in September as high volumes met strong buyer demand

The number of vehicles sold at Manheim across Q3 was 3% higher than Q1, and 5% higher than Q2. This increased volume was matched by buyer demand, and 80% of vans offered sold first time.

In terms of stock mix, Manheim saw a halt in the trend for higher-mileage vehicles at auction, as average age saw a marginal drop to 62 months, and average mileage fell by just under 4,000 miles to 74,620.

Performance against guide prices was also up by an average 1.2% when compared to results from Q2.

Matthew Davock, director commercial vehicles, commented: “In the wholesale market it was pleasing to see our highest volumes recorded during Q3, and the fact that the additional vehicles were met with such high buyer demand really demonstrates the strength in the market right now.

“Our buyers reported that levels of retail activity increased throughout the quarter, and this certainly translated into attendance at our physical and online auction events.”

Quarter three also saw the continued growth of its online wholesale channels, as 40% of vans sold to online buyers.

Davock continued: “We’ve worked hard to create an online proposition that benefits both buyers and sellers, and in Q3 we’ve really seen our online channels come into their own. We now advertise vehicles for sale online as soon as we have the details, and in the past three months 12% (+6% v Q1) of our total stock sold online before ever reaching a physical auction, significantly reducing average days to sell.

“For buyers, our digital channels offer the convenience of buying stock 24/7, backed up by the confidence that comes with high quality imagery, inspection reports, and our SureCheck assurance product.

“We’ve also teamed up with our Cox Automotive sister companies to offer online buyers a complete service, including LCV wholesale funding through NextGear Capital, and convenient transport via the Movex logistics platform.”

He added: “Looking ahead, demand for new LCVs remains healthy, which will naturally have a positive impact on the used market. The outlook for Q4 is promising, and wholesale volumes are set to increase through late October.

“Normal seasonal patterns suggest that the number of vehicles in the wholesale market will remain consistent through November and December, and I expect vendors to continue to sell right up until the close of 2019 and capitalise on what should be a healthy marketplace to the end of the year.”

For more of the latest industry news, click here.

Written by Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.

3709 posts