Used van market continuing to show strength in May
Manheim, the UK’s number one commercial vehicle auction company, saw May’s average van sale price rise by 7.3% year-on-year, to £5,040.
Sold volumes rose by 1.9% from May 2016 and were up 10.4% from April, which resulted in a slight month-on-month softening in average selling price of 2.2%.
Matthew Davock, head of LCV at Manheim, said: “Overall performance in May was much more consistent than April, which was heavily impacted by Bank Holidays. The commercial vehicle market showed particular strength in the second half of the month.”
Vans sold at Manheim in May were four months younger than the same month in 2016, with an average age of 63 months. Average mileage was down 3.6% year-on-year to 77,431. However, this was the highest average mileage figure recorded so far in 2017 having risen every month since January.
Davock continued: “Vans with high mileage and high incidences of damage continue to dominate sales. Our analysis shows average damage recorded across all units of £834, a 17% year-on-year increase. Some vendors are seeing average damage per van in excess of £1,500. Vendors whose reserve pricing reflects these crucial factors are rewarded with buyer loyalty and market leading performances. ”
“Buyer feedback received in May was mixed. April and early May were both slow from a retail activity perspective and proved to be the toughest months of the year. We saw a mixed buyer mood at our auctions, both in lane and online.”
On 4th May Manheim opened a new second auction lane at its multiple award winning Gloucester auction centre. This has quickly proved to be a major success for clients, with over 400 buyers participating at the launch sale, seeing over 350 vans sold in just over four hours.
The most impressive result of the month was undoubtedly the auction of the 1988 Ford Transit ‘Spy Van’, owned and restored by Manheim director of commercial vehicles, James Davis. It sold on the 22nd May at Shepshed for £10,300 with all proceeds donated to the Alzheimer's Society. It is understood this is a new world record auction price for a Mark 3 Ford Transit. A buyer’s video of the auction went viral with over 550,000 views and 3,500 shares on social media.
Matthew Davock concludes: “The signs in the marketplace are positive. As we enter June, the supply of de-fleeted vans will remain low and there will be no bank holiday disruptions. We have a full month of both auction events and retail selling days which will drive strong activity in the overall market place.”