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Scorching summertime van market set to smash seasonality

Scorching summertime van market set to smash seasonality

Manheim, the UK’s number leading commercial vehicle auction company, saw the average selling price for vans sold at its auctions rise by 8.5% year-on-year in June, to £5,121.98.  

As predicted in May’s update, defleeted volumes were expected to soften over the summer months and overall volumes reduced by 12% in June with a year-on-year reduction of 4% against May 2016. The reduction in the overall volume offered fuelled a 1.5% increase in Manheim’s average selling price against May 2017.  

Matthew Davock, head of LCV at Manheim, said: “Overall performance in June was very encouraging and when comparing month-on-month and year-on-year statistics this further demonstrates we are witnessing a super-heated market place in what historically can be a challenging period.”  

On average, vans sold at Manheim in June were four months younger than a year ago, with an average age of 61 months and average mileage was down 4.3% year-on-year to 76,934. However, since January average age and mileage of vans sold by Manheim continues to rise month-on-month.  

However, market differences between Q1 and Q2 2017 make the future very difficult to predict, according to Mr Davock.

He said: “The 2017 market place continues to demonstrate strength and consistency, but month-on-month volume levels are proving very difficult to predict what will happen next. With two quarters complete, who would have predicted the volume shifts we have witnessed, record defleeted volumes during Q1, followed by a staggering 27% less volume when you compare Q2 against Q1’s market place.”  

Meanwhile, a “super-heated” van market place continues to be the Manheim buzz word, taking into account the volume statistics.  

The auction company says it continues to be on track to break all previous sold records with Davock saying: “The first half of 2017 has been incredible and the results we have delivered for our clients have been industry-leading. We continue to grow our leading position and year to date we have grown our overall volume number by 14% against our 2016 position.  

“The market place remains positive and I predict defleeted volumes [in July] to be similar to June. If retail activity continues as expected this will further fuel what could be the strongest and very much super-heated summer market place on record.”