Weekly vans update with Matthew Davock - 17th July 2015
The chase is on for the rare stock and duplication finds its price level.
This week’s footfall has slightly increased on prior weeks and online buyer numbers remain healthy. I have witnessed for the first time that duplicate stock has settled to its natural level.
In previous weeks, you couldn’t get a buyer interested but now we’re seeing a shift and hands are increasingly starting to go up. Price remains the driving factor but this is fantastic news.
Buyers feedback on retail activity has somewhat improved, hence the slight increase in footfall. They report some successes in the lower value vans, up to £6,000 retail mark, but many are still reporting the £8,000+ mark remains very slow due to discounts on new. Many have commented this week on the amazing deals you can now get in the car derived and small panel sectors; for example £199 a month for a brand new van. These deals are all there for us all to see. Buyers report more sole traders and SME’s are gravitating to these deals which clearly has a knock on effect and is starting to influence the prices they can ask for their 1-2 year old used stock.
Heavily duplicated stock this week includes the following: Volkswagen Caddy, Vauxhall Corsa, Peugeot Partner, Citroen Berlingo, Nissan NV200, Vauxhall Vivaro and Renault Traffic. White examples have been selling between the 85-93% of guide money.
Lutons and Tippers, 4x4’s with high specification, 15 seater Transit minibuses and double cab small panel vans all remain very popular with the buyers. This week we have also seen a big shift of buyers to part exchange NO VAT vans – many of which are sub £6,000. Buyers have also been chasing down the vans in colours this week; in some instances paying up to £1,000 premium for a metallic versus white van.
Rare examples making premium money this week…
• Two 11 year old 2004 Mercedes Sprinter 416 panel vans, direct from the Police, having only covered 10-15,000 miles, selling for £8,700 and £9,500.
• 2007/07 Landrover 90 XS Station Wagon 60,000miles in Grey and sold No Vat for £14,300 (8 years old)
• An eight year old 2006/06 Ford Transit 260 SWB 62,000 miles in Silver (No VAT) sold for £4,700 (9 years old)
To conclude, I remain positive around the LCV market and many of our buyers and vendors have witnessed far worse seasonality years than this. The three key factors for vendors are:
1) Price point for duplicate stock in the overall market – know that detail
2) Adjustment of reserves for damage – blanket pricing switches off buyers
3) Buyer engagement – determined by vendors’ pricing policies on the previous two
As long as these factors are understood and applied flexibly and dynamically then buyers will stay loyal to each brand. Both guide performance and conversion rates will increase as we motor towards the end of traditional seasonality in September.
Have a great weekend and thank you again for your much valued business and continued support. Check back next week to see how the market has performed. Until then, keep ‘Sharing the CV Love’.