The average selling price of a used van has hit five figures for the third consecutive month at Manheim – with no signs of demand slowing down.
The company recorded another record-breaking average selling price of £10,554 in August, on the back of the previous record set in June at £10,222. The August record was 3.7% higher and £375 more than July’s five-figure average at £10,179. That’s despite the average mileage of used vans having increased by 105 miles, to 73,515 miles. Only the average age of used vans remained identical to July’s results, at 61 months.
And the average selling price today represents a year-on-year growth of 37% and a pre-pandemic growth of 63%.
Parent firm Cox Automotive said the month had defied expectations.
Matthew Davock, director of commercial vehicles, commented: “We expected August to start slowly, as we reported this period had already begun in July. However, in the last 10 days, we saw a noticeable uplift in buyers returning from holiday and a strong appetite shown to buy stock. Our expectations were certainly exceeded when we saw the YOY and staggering pre-pandemic growth figures in black and white.”
The rise comes as Manheim warns that LCV supply will be the lowest the wholesale market has seen for over a decade, with many contracts for fleet and rental volumes extended from September 2021 to Q2 2022, as replacement vehicle shortages continue. Earlier this year, fleet management software firm FleetCheck warned that operators are facing “worst-ever” vehicle delays – and delivery times of up to a year are becoming common.
Buyer numbers were also up in August compared to July, with 667 individual buyers purchasing vans at Manheim auction sale events, representing a growth of 1.8% compared to the attendances recorded in the previous month. The August first-time conversion remained in line with July, as seven out of 10 sold the first time, tracking above the seasonal LCV norm.
August’s data also reflects the demand for cleaner, emission-zone compliant Euro 6 vans. Ahead of next month’s introduction of the expanded ULEZ zone, August’s stock profile was represented by 58% Euro-6 and 42% of Euro5 or older product.
Davock added: “Demand growth for Euro-6 compliant awareness, together with the ever-increasing challenges of new supply availability – continues to fuel performances of wholesale vehicles. During August, we saw used Euro 6 van average selling prices increase by a further 2.2% compared with July, to a record-breaking £13,722. These vans typically had an average age of 39 months and average mileage of 56,273 miles.”
Euro 5 and older stock prices continue to also show strength, with Manheim selling its August vans with an average selling price of £6,076, together with an average age of 92 months, and an average mileage of 98,024 miles.
Davock added: “The price desirability in this segment of the market remains key in this area, as Euro 5 vans are on average, approximately £4,500-£6,000 cheaper to purchase than an equivalent Euro 6 van today.”
Manheim also said latest new van registration figures show the changing LCV marketplace – the SMMT figures show demand was up 6.1% compared to August 2020 and up 21.1% compared to the pre-pandemic five-year average.
Davock said: “The fact that these vehicles were registered a month before the traditional new September plate change proves what huge demand and urgency is needed in the UK market at present.”
But he cautioned: “Based on current van production challenges, I would also suggest these units would have been ordered back in Q4 2020 or Q1 2021, and I sense September registrations will be a true measure on the current challenges we see dominating the headlines today and for the next six months.”
