CV update from Matthew Davock - 24th October 2016
The past three months are usually known for their softer market period, where seasonality plays a big part in LCV performance, however this wasn’t the case at Manheim, the UK’s number one commercial vehicle auction company.
At the beginning of 2016, it’s unlikely anyone could have predicted that in June, August and September we would have recorded the strongest average selling prices and the highest conversions for LCVs all year.
The commercial market continues to show its strength. When comparing September against August we saw a 12% increase in units sold, performance against guide rising by 3% and the average selling price at our in-lane and online auctions recorded its highest average selling price recorded all year. Conversion rates at Manheim have been equally strong, with record high performance seen throughout the summer of 2016. We have seen the overall results for September at a healthy 77%, representing year-on-year growth of 8%.
So, how has each van sector been performing over the past few months? I will consider ‘What’s Hot’ and ‘Not So Hot’ as seen through the buyers’ eyes; overlaying performance against the guide.
Car derived van (CDV)CDV’s have shown good signs of consistency and the buyer appetite has been there to see. Three seater options seem to be high up on buyer’s wish lists, and side loading doors are a must.
Ford Connect LWB, Volkswagen Caddy Maxi, Renault Kangoo, Fiat Doblo, Fiesta new model
Not so hot
Vauxhall Corsa (-£300), Volkswagen Caddy standard (-£300), Ford Connect SWB old model, Ford Connect L1 (-£400), Citroen Berlingo 2 seat models (-£300)
Small panel van (SPV)This sector continues to go from strength to strength. With many new models entering this marketplace over the past 12 months. Buyers have reported that SPV’s have produced the strongest retail demand – high specification is dominating this sector.
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 (-£400), Mercedes Vito (-£800), Vauxhall Vivaro base model (-£300), Ford Transit 260/280 (-£300), New Shape Renault Traffic/Vauxhall Vivaro (-£700)
Large panel van (LPV)Large panel vans have shown the lowest demand and performance against the guide of all other sectors. In my opinion, this is because the big shift in demand for the SPV sector. The LPV sector is historically known as the work horse sector and we have seen many poor condition offerings returning over the past few months – condition remains key.
Citroen Relay/Peugeot Boxer (12-13 plate), Ford Transit L3 H2 Trend, Ford Transit 350 LWB/High and Med roof examples (14 plate), Ford Transit L4, Mercedes Sprinter MWB new shape
Not so hot
Ford Transit L3 H3 (-£500), 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 Sprinter LWB old shape 12/63 plate (-£800)
4x4Performance against guide in the 4x4 sector has remained very stable and healthy. Models with high specification and rear tops showed the strongest results.
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 (-£1,200)
Tipper, dropside and LutonOver the past few months, the tipper market has shown strong growth and the shortage of supply has supported the growth in demand. Extended frame dropside examples remained positive while Luton’s examples with tail lifts remained key through the buyer’s eyes.
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), Luton without tail lifts (- £1,500) and MWB/SWB dropside (- £800)
MinibusProbably the most up and down sector of them all when it comes to predicting buyer demand, but over the past few months we have seen sky high demand one week and non-existent the next week.
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)
When you compare year-on-year, Manheim saw five percent increase in volume in the marketplace, with average age of vans sold increasing by two months and average mileage also increasing – by 2,000 miles. Over the past 12 months, average age has been 64 months and average mileage was recorded at 80,041 miles.
2016 saw the strong performance in the commercial vehicle market for five years, with Manheim recording a £119 increase in the average selling price. Last year Manheim achieved exceptional performance, but 2016 is outperforming those figures across the board, despite stock being slightly older and having more miles on the clock.
Buyer feedback has remained incredibly positive; with many of our buyers reporting strong retail activity during September, with many saying they have seen the strongest August/September on record. Our buyer base has grown by 14% in 2016, supported by our investment in driving relationships and our focus on client experience, helping to support the growth and retention of the ever increasing number of buyers choosing Manheim.
SwiftThe other driving force around our record results has been our innovative and multi award-winning Swift process for vehicles at our auction and Vehicle Solutions centres, supported by a multi-million pound investment by our parent company, Cox Automotive. It has revolutionised the way we inspect, image and process vehicles, improving the quality and making the process quicker than ever before.
Commercial vehicles now go through the entire process – de-logo, wash, valet, 360° imagery and upload to our website to enter our sales channels – within one hour. Our van buyers have reacted very positively to the greater vehicle information and imagery to which they now have access, which gives them even more confidence, particularly when buying online.
Manheim is leading the market in selling vehicles online, with 32% of vans sold so far in 2016 going to online buyers – a 7% increase on the prior year – and this is only set to increase further, as 71% of all vans offered at auction received at least one online bid. The performance of Manheim’s online sales channels continue to deliver consistent performance and strong conversions for its clients.
Now to step back in time…
It was 2005 when Manheim pioneered online bidding by launching ‘CV Live’ powered, as it is today, by Simulcast – Manheim’s award-winning online bidding platform. Now in its eleventh year, CVs are offered for sale 7 days a week and 365 days of the year. Today 7 out of 10 vans and 9 out of 10 trucks attract an online bid. As at the end of September, with just over 11 weeks trading to go until Christmas Manheim, has sold more vans and trucks online than it did during the whole of 2015. It has taken just 39 weeks, or 273 days, to sell a total of 12,234 vans and trucks online – 38% of all CVs sold by Manheim this year.
This performance includes CV’s sold in timed weekend auctions, Buy Now events and on-site pop up auctions. The latter features our award-winning Mobile Auction Unit based on a VW Amarok. Over 1,000 CVs have sold via these channels this year – a 300% increase on 2015.
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.
Just this week we have been shortlisted for three industry awards, two from Commercial Fleet, namely “Best New Product/Service” and “Supplier of The Year” and one in the Commercial Motor Dealer awards under the category “Auction House of the Year”.
What makes the team and I really proud is the calibre of judges on the panels. These industry movers and shakers are acknowledging Manheim CV as the clear industry leader.
Thanks Matthew Davock