September van performance at Manheim
Manheim, the UK’s number one commercial vehicle auction company, once again saw younger and lower mileage stock keep used van values relatively stable in September in the context of a 42% increase in year-on-year volumes. Values were up 1.5% from August and down slightly (3.8%) compared to 12 months ago, despite the vast increase in units sold in Manheim’s auction halls and online sales channels.
The average selling price of vans sold by Manheim reached its highest level since January 2015, with the auction company seeing the youngest, lowest mileage stock for at least 12 months pass through its network. Conversions also improved in September, with vans registering an average days of 19 days in stock.
The seasonal trend of 4x4 commercial vehicle values increasing seems to have begun, with average selling prices up 6.7% (£455) in September, despite the stock being higher mileage and older than in August. In fact, despite half of the 4x4 units sold by Manheim having an average age of 114 months and average mileage in excess of 97,000, these older units still retained 25% of their original value.
Car-derived van units accounted for 45% of all vans sold by Manheim in September, and saw prices rise 5.1% (£162) over August, helped by being three months younger and with 5,982 fewer miles on the clock. Large panel vans above three tonnes saw values rise by 4.2% (£218) month-on-month and by 7.4% year-on-year. Compared to September 2014, the average mileage for car-derived vans and large panel vans above three tonnes has dropped by more than 10,000 miles and 4,000 miles, respectively.
The age profile of used vans still shows a two-tier market, with younger ex-daily rental stock and older, higher mileage vans. While 47% of car-derived vans sold were 2-4 years old, 36% were an average of 88 months old with nearly 80,000 miles on the clock. Similarly, 32% of small panel vans were 2-4 years sold, with 44% having an average age of 99 months and average miles of 97,000. For large panel vans above three tonnes, 41% were 2-4 years old, but 37% were older, higher mileage units, with an average of 115,000 miles on the clock and being 92 months old.
Matthew Davock, Head of LCV at Manheim, said:
We continue to see younger and lower mileage vans boost used prices, with September seeing the youngest and lowest mileage stock we have sold for at least 12 months.
“The SMMT’s registration data shows that we are on for a record year for new van registrations. Our sales data shows that the average age of vans we have sold so far this year means that they were registered in 2009/2010, which was a time of record low registration volumes, so we do not expect to see van values face any significant challenges in the coming months.
“In our view, any potential cooling of the market due to seasonality should not be confused with talk of a tipping point. Our in-lane and online commercial vehicle sales are full of plenty of wholesale buyers, who are all hungry for the right stock.”