A new full hybrid auction sale programme, combining physical auctions with online sales, has contributed towards the return of five-figure average LCV sales prices at Manheim.
A total of 1,760 van buyers purchased a vehicle throughout September via Manheim’s network of four nationwide physical auction sites and its upgraded Simulcast tools for online purchasing.
Robust demand saw average selling prices return to five figures, at £10,326, an increase of 4.5% or £446 per unit sold.
Despite stock becoming increasingly older and higher mileage – September’s average was 65 months, with 79,200 miles – some of the strongest key performance indicators for the past six months were recorded.
Performance (to the guide) increased by a 5.12%, its highest figure in 2022, while first time conversions also rose 7.4%, with 80.6% of LCV product selling first time.
Days to sell for vendors was also positive, with vans selling four days faster on average when compared with previous months in 2022.
The wholesale LCV market was further boosted by an influx in new stock arrivals for the month, helped along by the recent September plate change.
Manheim recorded 13% more LCV volume in September when compared with the same period in 2021. However, despite a period of momentary respite, Manheim does expect to observe stock shortages throughout 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.
“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,” he added.
“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 increasing by 10.8% compared to the same time last year. The SMMT reports 34,950 units sold in the month.
Highlights were seen in the 2.0-2.5t range, where registrations increased by 40.8%. Battery electric van sales were also up 70% year-on-year, taking 4.4% of the new LCV market share.
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.”