Average LCV sales prices at Manheim were back in five figures again last month, supported by robust demand and the firm’s blended sales approach.
Selling prices last month increased by 4.5% (£446) to £10,326. Guide performance increased by 5.12%, its highest figure in 2022, while first-time conversions also rose 7.4%, with 80.6% of LCV product selling first time – some of the strongest key performance indicators for the past six months.
Days to sell for vendors was also positive, with vans selling four days faster on average when compared with previous months in 2022.
That’s despite stock becoming increasingly older and higher mileage – September’s average was 65 months, with 79,200 miles
Manheim said its recent launch of a new full hybrid auction sale programme had contributed to the high prices seen. A total of 1,760 van buyers purchased a vehicle throughout September via its network of four nationwide physical auction sites and its upgraded Simulcast tools for online purchasing.
The wholesale LCV market was also boosted by an influx in new stock arrivals for the month, helped along by the September plate change. LCV volumes were up 13% in September when compared with the same period in 2021.
But stock shortages are warned for Q4, as many fleet and rental companies forecast increased demand to coincide with winter and the Christmas period.
Matthew Davock, director of commercial vehicles at Cox Automotive, said that buyer feedback remains mixed, with some experiencing strong retail demand for LCVs despite challenging market conditions, with others reporting more difficulty.
Davock outlined: “During September, six out of ten buyers reported improved market sentiment, but seven out of ten said that profit had dropped to its lowest level year-to-date. Challenges still exist when it comes to moving on old stock, as highlighted by nine out of ten buyers who believe that the cost and time required to get vans up to retail standard has reached challenging levels.”
The new LCV market also showed signs of positivity during September, with registrations climbing 10.8% in September, marking the first month of growth in 2022. The SMMT data also shows uptake of battery electric vehicles (BEV) continued to rise, climbing 70.0% and gaining a 4.4% of the market – up from 2.9% in 2021.
Davock concluded: “The LCV market remains challenged by external factors, but both the new and wholesale sectors are holding strong in the face of adversity. The wholesale market in particular had a strong September, with positivity reflected in the new market.
“It is likely we will see further stock shortages in the used market throughout the rest of the year as fleet and leasing demand increases. However, based on current performance levels, the market is well positioned to ride out any short-term challenges and maintain buoyancy.”
