Current increases in van auction volumes and stock levels should not be viewed as ‘doom and gloom’, but ‘boom and boom’.
So says Manheim as it reported a 12.6% year-on-year rise in average selling prices to £5,443 at its van auctions in February despite sold volumes rising 18.1%.
Both mileage and average age improved, with the latter standing at just over 60 months, six months younger from February 2016, and average mileage at 73,195 miles, which was a reduction of 10.5% year-on-year.
Conversion rates were down slightly, by 3%, compared to the same month last year, but this was in the context of Manheim offering 22% more vans in its auctions year-on-year. Buyer attendance, both footfall and clickfall, remained strong at Manheim, with a record-breaking 36% of vans selling to online buyers in February – a 4% increase from February 2016.
Matthew Davock, head of LCV at Manheim, said: “We have more buyers operating in the LCV market than ever before, with an increase of 14% in our buyer accounts since the start of 2017.
“Besides volume, duplication and vehicle return condition are the two issues dominating the used LCV market at the moment. There are three tiers emerging in the market now, divided between two-year-old vans, 3-6 year-old vans and vans over seven years old.”
The volume of younger vans has been at a record high, with a 14% year-on-year increase driven by PCP and daily rental returns. Due to the discounts available on new vans, this segment continues to present some challenges. There is particular demand in the 3-6 year-old segment for clean stock with less than 60,000 miles on the clock. Mileage and condition also dominates the market for older vans, with buyers seeing increasing costs for body shop and repair work.
Davock added: “As we enter March and the plate change period, I believe we will see arrivals reduce during the first three weeks, with additional time required for equipment changes and key-for-key handovers to take place. Van vendors should continue to focus on duplicate, late-plate and damaged stock pricing to ensure it is in line with buyer expectations.”
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