High numbers of buyers, conversion rates and average selling price are being seen in the wholesale van market; but are being driven by underlying demand rather than a lack of supply, with no signs of the sector slowing down.
Figures from Manheim show the total number of vans sold by the firm in the month of June 2020 was up both year-on-year and when compared to January and February 2020, prior to lockdown.
However, with June’s stock volume only 12% down year on year, the auction specialist put paid to the widely held perception that it is the lack of wholesale supply driving current van demand to record levels.
Manheim’s data also showed the average selling price of vans in June has increased by 16% compared to pre-lockdown levels, with average age and mileage remaining unchanged.
Euro 6 vans performed particularly well in June, seeing their highest volume penetration to date and accounting for 44% of all vans sold. Accompanying this, demand bounced compared to pre-lockdown, seeing a 6% increase in average selling price, to £10,751.
Pre-Euro 6 van volumes represented 56% of the total sold by Manheim in June; their values also bounced, an average of 14% more from a price guide perspective versus pre lockdown levels, with an average selling price of £5,194.
The Simulcast online bidding platform used to underpin Manheim’s online auction programme also saw two new monthly records; average June buyer attendances were up 22% compared to pre-lockdown and more than 800 unique buyers purchased online. Of this figure, a quarter had never purchased online.
Matthew Davock, director of commercial vehicles, Manheim, added: “No one could have predicted the record-breaking market over the last seven weeks.
“Undoubtedly external stimulus has fuelled current pent-up van retail demand, including the relaxation of business rates and rents, deferral of VAT payments and the employee furlough and self-employed business support loans and grants. The reality is that commercial vehicles underpin the operation of the UK, so whilst there are sadly losers at this time there are also winners, specifically in-home delivery, so I remain positive that the used commercial vehicle market will not slow anytime soon.”
