Weekly vans update with Matthew Davock - 17th June 2015
This week the sun has been beaming down on the righteous, yet, despite healthy catalogue entries, we have witnessed a real mixed bag of commercial sales.
Historically seasonality has kicked in around this time but this year it feels different. In the past buyer numbers would typically start to decline and conversion rates harden. This week total physical and online buyer registrations have been very much above average for this time of year; some sales have seen the biggest amount of footfall in 12 months. Buyers have really made the effort this week and bidding activity has noticeably stepped up a gear, but not consistently at each site, sale or vendor sale section.
When looking at buyer behaviour this week, I have noticed many trying to source the cleaner and rarer stock. These examples have proven to make very strong money. On the flip side the less desirable and duplicated stock has been all about price this week. Vendors who understand what falls into these categories and price them accordingly have reaped the rewards this week. Some vendors achieved 90% plus conversions with respectable CAP performances. But when looking through sold reports in more detail we have seen many examples fall into two distinct pricing categories; namely the 108% plus of CAP for rare and clean stock and sub 90% of CAP for high damage and duplicate stock. Also some of the damage adjusted CAP performances - where sale price and damage price are totalled and compared to CAP - see 130% to 150% being the norm. There really is a significant amount of damaged vans in the market.
Our buyers’ feedback has mirrored the above. Many are saying retail activity remains healthy for this time of year. Many are selling well and taking enquires to source stock but finding this stock is proving difficult. They have also commented on the duplication of stock currently round the country and many are reporting if they sell these examples they will re-invest in the cleaner examples first. It should not be forgotten that body shop and workshop lead times will start to extend as we hit the holiday season, that doesn’t help dealers when a steady supply of retail prepared stock is required to aid cash flow and enable re-stocking.
This week, believe it or not, as the weather gets warmer so does the 4x4 market. Prices have increased and the buyer demand has been there to see and in some instances making £300-£400 more than similar examples sold in previous weeks. High specification remains key in this sector.
Car derived and small panel vans are still dominating our auction halls and the buyers have definitely been selecting the cleaner and higher specification examples first, but like I confirmed above it’s all about the price in this two segments.
15 seat and 17 seat minibuses with tachographs have also seen an increase this week, with bus season just around the corner. Tachograph and wheelchair adapted examples have sold very well.
To conclude there is still a great deal of hard work and understanding on the rostrums at Manheim. From the auctioneers to the vendors and buyers we all understand the market conditions I speak of here. That said when the marketplace becomes more challenging it is our industry leading auctioneers that come to the fore; using all their tools, expertise and experience to get bids, and work hard around the heavily damaged and duplicated stock.
Thank you again for your much valued business and continued support. Next week is really shaping up to be a belter so please check back in a week or so to see how we’ve performed. Until then, keep ‘Sharing the CV Love’.