Used LCVs achieve record prices in August

Matthew Davock, director of commercial vehicles at Cox Automotive

Manheim has recorded another record-breaking LCV sales performance in August, bucking the traditional seasonal slowdown and setting an all-time average selling price record. 

Used van values were 28% higher Year-on-Year (YoY) in August, up from £5,680 to £8,158.

First-time conversion rates are also strong, standing at 87% and up 13% compared to the same period last year.

The auction provider says this significant growth was not due to a lack of wholesale supply, as the volumes of vans in auction are only tracking 7% behind August 2019.

Matthew Davock (pictured), Manheim’s director of CV, said: “Used van values are up a third over the same month in 2019, with 90% of vans finding a buyer at their first time of asking.

“These post lockdown market performances are exceptional. Buyers are now logging onto more online sale events meaning the active audiences are larger and vendors are liquidating stock faster for optimum values.”

This current market performance underpins significant retail demand for commercial vehicles as the UK exits full lockdown. One thing has remained constant since lockdown; the shift in consumer shopping activity from physical to online retail. As physical businesses re-open they will require the support of commercial vehicles to underpin their day-to-day operations.

Looking into the August’s stock profile in more detail, the demand for Euro 5 and pre-Euro 5 vans stands out with average selling price in August 41% higher than pre-lockdown. Considering age and mileage pre and post lockdown, average age in August was only four months younger with 5,000 fewer miles. 58% of vans sold in August were Euro 5 or older and Euro 6 vehicles also enjoyed a rally in price with values in August being 15% higher than pre-lockdown. 

Monthly LCV buyer sentiment revealed that 60% of dealers post lockdown have reduced their stocking volumes by an average of 40% compared to pre-lockdown. 80% of dealers are also reporting significant delays on retail preparation, advising that it is taking up to 10 days longer to process due to new Covid-19 compliant working practices. 

Davock added: “We may be approaching the ceiling of used wholesale values. Due to extended lead times and supply chain pressures, I believe that the next 12 months will continue to be a robust record-breaking period for LCV market activity in the used sector.”

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