Van volumes rise at Manheim with prices remaining positive
Vehicle remarketing giant Manheim saw the overall volume
sold at its van auctions rise by 18.1% year-on-year in February, while average
selling prices also remained positive, increasing by 12.6% over the same period
The stock profile of vans at Manheim’s auctions improved,
with an average age of just over 60 months, six months younger from February
2016, and average mileage of 73,195 miles, which was a reduction of 10.5%
Conversion rates were down slightly, by 3%, compared to
the same month last year, but that 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: “The
increase in volumes and stock levels we are seeing should not be viewed as
‘doom and gloom’, but ‘boom and boom’. 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,
three to six-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, that segment continued to present some
challenges, according to Manheim.
However, the company said there was particular demand in
the three to six-year-old segment for clean stock with less than 60,000 miles
on the clock. Mileage and condition also continued to dominate the market for
older vans, with buyers seeing increasing costs for body shop and repair work.
Mr 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.”