Age, mileage and conversion rates increase during March
As quarter one comes to a close, I write this van update with optimism, strength and excitement for all things commercial.
On the back of record Q1 volume in the LCV market place, Manheim have offered 21% more volume than the same quarter in 2016.
During March, we saw van de-fleet volumes decrease, less stock duplication and stronger conversion rates – underpinned with robust market performances.
More records have been broken in March. Year on year we have offered 20% more vans than in 2016 and 6 % more than February, and let’s forget January and February 2017 were both new records for de-fleeted van volumes. March started off very similar to both January and February, but as the month went on volume started to drop and conversion rates reached a record high for 2017. With March being the longest selling month of the year, we have recorded the highest volume sold in almost a decade, showing a 10% increase on February volume sold and a staggering 21% sold volume growth on March 2016.
• The average selling price of all vans sold in March was £5,298. Whilst 3% behind February, age and mileage both increased month on month by 3 months of age and 2,000 more miles. Year on year remains very positive, taking into account the increase in 21% more volume, average selling price has increased by 11% and age and mileage has dropped by 4 months of age and 7,000 miles
• Conversion rates increased by 3% compared to February (on the back of a 6% increase in volume month on month) even though March was a 5 week selling month
• Average age was 63 months and mileage 75,000. Year on year age dropped by five months and mileage by 6,000 miles
During March, buyer footfall and clickfall remained positive, with footfall slightly improved over both January and February. Online attendee audiences continue to go from strength to strength and perform ahead of expectation. We also saw a record breaking 34% of all vans sell to online buyers – a year on year increase of 3%.
Our Online Auctions continue to go from strength to strength with a 45% increase in vans sold through this channel year on year. Holding a series of online only auctions uniquely featuring pre-selected stock allowed these events to produce market leading results in terms of conversion and sale performance.
Our ever important buyer base continues to grow and compared to Q1 last year we have grown our buyer base by 6%. We’ve seen a staggering 23% increase in the number of buyers who have purchased over 51 units and a 3% increase in franchise dealers. All this activity is underpinned by the continued growth of NextGear Capital and Motors.co.uk.
Buyer’s feedback in March has been slightly mixed with many saying the first two weeks remained slow, but as the month developed the phones and enquires increased and the second half of March was positive for most.
So in my opinion, with supply softening for the first time in 5 months, I expect buyer demand to continue to be positive during April, meaning conversion rates will continue to rise, on the back of less volume being offered. We do need to mindful of bank holidays during April, but in my opinion we have the perfect storm appearing… Less stock, a guide price reduction reported of around 3% and buyer demand at a record high.
To conclude, record breaking, optimism and strength underpinned March, I just encourage as we enter April extra focus is needed around reserve pricing on duplication, late plate and heavily damaged stock. If these are priced accordingly high conversions are the result.
Other newsManheim has had 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 scooped another industry award during February from Van Fleet World. We collected the prestigious “Innovation in Technology” award for our 360° imagery solutions. We are all very proud of this award as it further demonstrates our commitment to the CV industry and the significant role we play in the future of the ever changing CV remarketing landscape.
During Q1, we have continued to grow and invest in our CV network, we’ve opened a second sale day at Haydock which has proved highly successful, and Q2 is set to continue this trend. Colchester’s keenly anticipated SWIFT facility comes online and on May 4th Gloucester’s 2 lane super CV centre launches with a Star Wars themed event.
Dates for the diary!Where has the year gone? Please come and see myself and all my CV team members on Manheim’s stand at the CV Show on the 25th, 26th, and 27th April. We’re in the same place as usual and will be serving hot and cold drinks as well as a buffet lunch from noon. It would be great to see you!
James has also asked me to make sure you keep an eye out for his “Spy Van” in the coming weeks! It was booked onto the Transit Van Club stand at the Practical Classics Restoration Show at the NEC at the end of March and then on Manheim’s stand at the CV Show in April. On 22nd May it will be auctioned off at Shepshed with 100% of the proceeds going to Alzheimer’s charities. It’s a cause close to his heart as his Dad was diagnosed five years ago. See the restoration story unfold here https://www.facebook.com/Therestorationvanman/ and please get involved any way you can!
Have a great April all and thank you again for your input and very much valued business and continued support. April is gearing up to be an awesome month with further quality selection of vans from the UK’s leading vendors. Tune in to see how they perform in a months’ time. Until then, keep ‘Sharing the Love’ for all things CV.