Weekly vans update with Matthew Davock - 3rd July 2015
Sizzling temperatures matched with record levels of duplication. This week the sun has been shinning and the auction halls have remained healthy with van stock to sell.
I have witnessed strong buyer attendances for this time of the year, sales and online buyer numbers have also increased on prior weeks, although this paints the perfect picture, the activity of buyers this week has remained very selective.Buyers are out in force but many are all trying to source the same stock and these items are very much making premium money, in some instances 120-130% over book money. This stock however, is very hard to find at present and in many cases could contribute as little as 10% of all catalogue entries.
Two key areas are dragging down the overall measures against guide performance and the overall conversion;
Duplication of stock is dragging the overall performance and conversion down in many sales. Buyers are being very selective around this product and buyers will pick clean condition, then mileage and vendor’s brands who correctly price this duplication.
Heavily duplicated stock this week includes the following make and models
Peugeot Partner, Citroen Berlingo, Nissan NV200, Vauxhall Vivaro, Renault Traffic and Volkswagen Caddy vans.
Late and low mileage stock remains to be a challenge, on paper and catalogues these should be seen as good news to all retail buyers. The challenge is, as we witness a record for new vehicle registrations and new models, it has inevitably produced heavily discounted and fantastic deals on new vehicles. This is definitely having an impact on nearly new and one year old stock currently in the auction halls. We are seeing examples of one year old vans booking at more than you can buy a new one! I feel the discount on new will continue and come September I feel the discount will be even more to see.
This week I have seen many vendors conversions rates increase, many of the rostrum representatives are starting to understand what is duplicated, the impact of damage stock and how to engage the buyers in a positive way.
Pricing strategy around damage and duplication remains key and some vendors have priced stock in line with the market and seen conversion rates rise to 80% plus conversions.
Many of the buyers I have spoken to this week have seen an increase in retail activity and many are selling relatively good numbers against prior year. With 30% more sold volume in the market place there is 30% less of an urgency to stock units. Over the last 2 years, buyers have needed to stock 4-5 of the same make and models because they didn’t know how soon they could replace these units. Many buyers now only stock 1 or 2 as they know when they need to replace, it will quite easy to re-stock.
On a positive note this week the following make and models have sold well
To conclude, I would just like to share with you all how June Performed.
Average selling price increased by £259 on previous month and van volumes rose year-on-year. Manheim saw a record number of vans in its sales in June – up 38% from this time last year and overall it was a strong month for average selling prices and conversation rates.
The average age of used vans in the market decreased slightly as mileage increased a small amount, reflecting the 20% increase in daily rental stock seen in the auctions. Large panel vans performed well, particularly in terms of average selling price, as there is still a shortage of stock available in this sector. Larger units above three tonnes made up 14% of volume last month, with a significant rise in average selling prices year-on-year.
During June we continued to see a two-tier LCV market, made up of ex-daily rental stock with an average age of 3-4 years, and an older extended stock profile with an average age of 8-9 years. Market performance in June was focused on two market sectors, the car-derived van sector and the small panel van sector, which made up 59% of total volume.
Values for both sectors were slightly down on June 2014, in line with the used commercial vehicle market as a whole.
Stock within the car-derived van sector and small panel van sector was split into the two-tier market of younger ex-daily rental stock and older higher mileage vehicles, of all car-derived vans sold, 38% had an average age of 96 months. For small panel vans, 49% of stock had an average age of 103 months.
Bring on the challenges, opportunities and rewards July will bring. Have a great weekend all, and thank you again for your much valued business and continued support.
Until then, keep ‘Sharing the CV Love’.