CV update from Matthew Davock - 14th November 2016
The LCV market continues to go from strength to strength and October did not disappoint. Following on from a strong August and September the underlining question around the market place was when would we see the market dip? I am pleased to report that October shown no sign of dipping and produced the strongest average selling price all year.
During October, the average selling price at the UK’s number one CV auction company increased by a staggering £541 pound when compared against September – and £321 better that any previous month in 2016. Following on from this, October recorded the lowest average age and mileage all year. The average mileage of all stock sold in October was 73,000 miles and had an average age of 63 months. When compared against September, average age reduced by 3 months and average mileage reduced by 5,000 miles.
On the back of a very strong performing month, we also recorded our 2nd highest conversion rate of the year; improving by 4% compared against September. During this month headline performance against the guides showed signs of consistency with the total market at Manheim Commercial Vehicles recording a very healthy 98.52% of CAP Average for all stock sold – the strongest monthly performance all year.
6% more volume was offered in October, resulting in the month recording the second highest month in terms of volume in 2016This further unpins how healthy the van marketplace has been during October.
Overall the van marketplace during 2016 has shown strong consistency, stability and growth on what has been a very strong 10 months of performance and conversion. At a headline level, the average selling price in 2016 has increased by £170 year on year on the back of average age and mileage being almost identical to 2015 – and let’s not forget what a strong marketplace 2015 was!
During October, our online performance continued to go from strength to strength with 33% of all LCV’s selling to online buyers, of which a staggering 73% of all vans offered received an online bid. We also held a very successful online-only sale which saw 87 franchise and independent buyers logging on. Bidding was feverish and a total of 16 buyers won the battle to secure stock. Just over £427,000 in total sales value was achieved, reaching 103% of CAP average and all of this combined to have a positive impact on our month’s performance.
During October we’ve seen what’s hot and what’s not through our buyer’s eyes and from comparing performance against the guide.
Car derived van (CDV)Hot
Ford Connect LWB, Citroen Berlingo Enterprise, Renault Kangoo, Fiat Doblo, Ford Fiesta new model
Not so hot
Vauxhall Corsa (-£300), Volkswagen Caddy standard (-£300), Ford Connect 2014+ L1 (-£600) L2 (-£400) Citroen Berlingo 2 seat models (-£300)
Small panel van (SPV)Hot
Ford Custom Limited, Renault Traffic Sport, Vauxhall Vivaro Sportive, Volkswagen Transporter Highline 140/180ps
Not so hot
Peugeot Expert/Citroen Dispatch (-£600), Volkswagen Transporter base model (-£500), Mercedes-Benz Vito (-£800), Vauxhall Vivaro base model (-£300), Ford Transit 260/280 (-£400), New Shape Renault Traffic/Vauxhall Vivaro (-£400)
Large panel van (LPV)Hot
Citroen Relay/Peugeot Boxer (12-13 plate), Ford Transit L3 H2 Trend, New Model Ford L2/L3 and L4 Models, Ford Transit 350 LWB/High and Med roof examples (14 plate), Mercedes-Benz Sprinter MWB new shape
Not so hot
Citroen Relay/Peugeot Boxer 64/65 plate (-£1,800), Renault Master 64/65 plate (-£1,200), Volkswagen Crafter LWB 109/136ps 64/65 plate (-£1,800), Mercedes-Benz Sprinter new shape and old shape LWB 12/15 plate (-£800)
Ford Ranger Wildtrack/Limited models (62-14 plate), Toyota Hilux with leather, Isuzu High Spec, Volkswagen Amarok Highline
Not so hot
Nissan Navara (-£800), Mitsubishi L200 (- £1,000), Ford Ranger old shape 10/12 plate (-£800)
Tipper, dropside and LutonHot
Ford Transit 350 single cab tippers old shape, Ford Transit 350 double cab tippers old shape in clean condition
Not so hot
Volkswagen Crafter tippers (-£1,200), Vauxhall Movano tippers (-£1,500), Mercedes-Benz 313 double cab tippers (-£800), Lutons without tail lifts (- £1,500) and MWB/SWB dropside (- £800)
MinibusDuring October we saw very low demand for this product and conversion rates have been at their lowest rates for this product all year.
Welfare examples eg. 15 seat Ford Transit and Renault Master, Volkswagen Crafter 15/17 seat
Not so Hot
Ford Tourneo old shape 08/12 (-£1,500), Ford Transit 350 EL 17 seats without tachographs (-£1,800) with tachographs (-£1,200)
The buyer appetite has been there to see during October and both physical and online attendance remained very positive. This is incredible and further underpins the strength of the UK market place. Following on from very strong purchasing months in August and September, thanks to our strong buyer base. Many have confirmed retail demand has remained positive during October, even with many recording they are carrying up to 25% more volume than 2015.
Looking forwardDuring the first week of November we have seen volume continue to increase and show similar stock levels as we witnessed during October, although showing a slight downturn on conversion results. In my opinion, volume could be up to 20% greater than we witnessed in the same period during 2015. The big question will be around retail demand and will it continue to show the strong consistency it has shown for our buyers. This will be the driving force around conversion rates during November and if the retail demand softens, condition and price will remain key, as buyers will select the cleaner stock first and only buy heavily damaged stock if the price is reserved correctly.
As the UK’s number one CV auction company, Manheim has plenty to celebrate with records tumbling left, right and centre. On the back of having the largest and most comprehensive CV auction programme in the UK, Manheim can proudly demonstrate its commitment to the CV industry and the significant role it will play in the future of the ever-changing CV remarketing landscape.
Only 16 days to go until the fabulous Commercial Fleet awards where we have been shortlisted for two industry awards “Best New Product/Service” and “Supplier of the Year” and only 50 days to go until another exciting year starts in the 2017 commercial market place.
Thank you again
Regards Matthew Davock
Head of Light Commercial Vehicles