The average used van selling price hit £10,930 at Manheim in September, setting a new record.
It’s the fourth month running that the average selling price of a used van has hit five figures at the auction giant, after the previous month’s record set at £10,554. The average selling price is up 30% year-on-year growth and 79% pre-pandemic.
In addition, both the average mileage and average age of vans sold at auction were the highest seen all year, indicating just how competitive buyers are becoming for LCV stock. The average mileage of used vans increased by 5,841 miles, to 79,356 miles, while the average age was also the highest seen in 2021 at 63.5 months.
Buyer numbers improved in September compared to August, with 56% more buyers seen at Manheim auction sale events. The September first-time conversion remained in line with August, as eight out of 10 sold the first time, tracking above the seasonal LCV norm.
Matthew Davock, director of commercial vehicles at Cox Automotive, said: “I was hoping the used van market would see some signs of recovery this month, but instead we had a staggeringly large increase in the average selling price. While we welcome the current appetite for used vans, I do feel that buyers are going to need to continue their strong appetite for buying stock through the winter. The current situation will continue for some time.”
Davock added that the growing number of nationwide low emissions zones, and this month’s expansion of the ULEZ, continue to fuel demand for new and used Euro 6 vans.
September’s average price of Euro 6 vans increased by £953 compared to August’s results, and to another new record of £14,675. The stock profile was broadly in line with the average age at 0.6 months younger, but with 1,500 miles higher compared to August.
There was high interest in Euro 6 larger panel vans throughout the month. Two- to three-year-old Mercedes-Benz Sprinter, Ford Transit and Volkswagen Crafter models were some of the most sought-after models.
Davock added: “Larger vans are all very much in demand now, due to the amount of delivery drivers we have on our roads and because of the retail demand in the run up to Christmas. Urgency for this product is clear as we enter the last quarter of 2021 and buyers are prepared to pay for them as new vans are still so difficult to get hold of.”
Manheim also saw a larger swing in the average age of Euro 5 stock sold, with an increase in age of 5.8 months and mileage increase of 11,024 miles. This resulted in the average selling price falling by just £250. When comparing the figures in September 2021 to those of September 2020, Manheim’s average selling price has risen by 30% YoY.
Supply issues are looking likely to worsen over the coming weeks too.
For those businesses across the UK that have been unable to acquire new Euro 6 vans, rental has become a last resort; the sector is already at record levels as the busy Christmas period begins in Q4. As a result, Manheim is expecting a continuation of the much lower de-fleet volumes it has encountered.
Manheim also expects the final quarter of 2021 to be the lowest Q4 for wholesale van volumes on record and from this return volumes could be as much as 35% lower than Q3 volumes.
