The highest January volume recorded in 8 years at the UK’s number 1 CV auction company
Today’s headline title paints just half the picture during January…. During the month we have seen 24% more volume offered than the same period in 2016. Going into 2017, I did predict more volume during quarter 1 but even this figure is above my expectation.
Since opening the doors in 2017 the stock has been a consistent wave of van volume and going into week 1 of February this shows no signs of slowing down. When analysing our Q4 volume, the last quarter of 2016 saw van volumes increase by 20% year on year. So the volume is not such a surprise to the market place, the biggest surprise for me is the fact we witnessed a very active December market place. Both vendors and buyers remained very active right up until the last selling day in December and when I compare further year on year analysis, Manheim as a whole, were carrying the lowest stock volume over the Christmas period in 5 years.
As many of you know, I look at the current and 2016 market place with healthiness and optimism… 2016 was the strongest market place in 6 years and even with 24% more volume seen in January 2017 I remain very optimistic. When you take in all the above market factors the following has been achieved during January at the UK’s number 1 CV auction company.
The average selling price of vans sold at Manheim in January was £5,576 – the strongest in 8 years and a rise of 9% year-on-year and 4% on December. Conversion rates were slightly down by 6% compared to the same month in 2015 (on the back of 24% more volume), and buyers being out in force plus vendors selling right up until Christmas close period.
Average age and mileage of vans sold during January fell year-on-year, with age dropping by one month to 59 months and mileage by 5,751 miles, making the end result 73,815 miles.
In my opinion, these results demonstrate that we are still in a very active and healthy market, during this period at Manheim we have sold our most volume during January in the past 6 years… and a year on year increase of 18%. The only slight negatives to take away from the overall results are the 6% decrease in the overall market conversion… but this has been impacted by 3 factors: The overall return condition, the amount of duplication stock we have seen enter the January market place and an increase in younger stock. During this period we have seen average damage on stock entered increase by £368 when compared to the same period in 2016.
We have also seen an increase in 1-2 year old product enter the market place, just like we did in December, and this had both a positive and negative impact on our average selling price. Being a positive factor, but on the flip side late year and low mileage stock with damage has not been at the top of our buyer lists plus the added pressure on nearly new stock that is simply too close to the fantastic offers manufactures are offering on new and pre-registered stock has affected our overall conversion rate.
Online performance at Manheim continues to grow, with 33% of vans sold in January selling to online buyers, which was 5% higher than January 2016 and 2% above the figure record in December.
How have the each sector been performing early doors in 2017
Car Derived Van (CDV)This sector has shown good signs of consistency and the buyer appetite has been there to see. 3 seater options seem to be high up on buyers’ wish lists and side loading doors are a must.
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 (-£300) L2 (-£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 market space over the past 12 months. The buyers have reported that this sector has 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 (-£500), Mercedes Vito (-£800), Vauxhall Vivaro base model (-£300), Ford Transit 260/280 (-£400), new shape Renault Traffic/Vauxhall Vivaro (-£400)
Large Panel Van (LPV)This sector has shown the lowest demand and the lowest performance against the guide of all other sectors. In my opinion this is because the big shift in demand for the SPV sector. This sector is historically known as the work horse sector and the vehicles we have seen returning over the past few months have been in poor condition - remember condition remains key.
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 medium roof examples (14 plate), Mercedes Sprinter MWB (new shape)
Not so hot
Citroen Relay /Peugeot Boxer 64/65 plate (-£1,800), Renault Master 64/65 plate (-£800), Volkswagen Crafter LWB 109/136ps 64/65 plate (-£1,800), Mercedes Sprinter new shape and old shape LWB 12/15 plate (-£800)
4x4This sector has performed very inconsistently during January. Models with high specification and rear tops are showing the strongest results.
Ford Ranger Wildtrack/Limited models (62-14 plate), Isuzu high spec, Volkswagen Amarok Highline
Not so hot
Toyota Hil Lux 14-65 plate (-£1,500) Nissan Navara (-£800) Mitsubishi L200 (- £1,000) Ford Ranger old shape 10/12 plate (-£800)
Tipper, Dropside and LutonOver the past weeks the Tipper market has shown strong growth and the shortage of supply has supported the growth in demand. Extended frame Dropside examples remain positive and Luton’s examples with tail lifts remain key through the buyers’ 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), Lutons without tail lifts (- £1,500) and MWB/SWB dropsides (- £800)
MinibusProbably the most up and down sector of them all when it comes to predicting will the buyer demand be there or not. During January we have seen very low demand for this product and conversion rates have been low.
Welfare examples, 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)
During this month, buyers’ overall footfall and clickfall remained positive, we saw footfall slightly lower than expected for a January market place but our online attendees continue to go from strength to strength. Many buyers have been choosing to visit our auction centres through online channels and I feel will be a similar pattern throughout quarter 1. During the month, many buyers have told me that retail activity for the first 2 weeks started slowly, but the last 2 weeks has performed very positively – which should increase the overall conversion during February.
To conclude, optimism and strength continues to be my answer for January on the back of a 8 year record of volume and a strongest recorded average selling price in almost a decade. The market is definitely not doom and gloom like some are reporting. I just encourage, as we enter February, that extra focus is needed around duplication, late plated and poorly damaged stock pricing, if these are priced in line with focus, the buyers will buy if the engagement and price is right.
As we move on to February, I am absolutely thrilled to welcome Stuart Peak onto the National CV Team; he will be my Group LCV Manager going forward. Stuart, previously at Manheim Colchester since 2001, since risen through the ranks and held a number of management positions at the auction centre. He brings with him a unique operational background and CV skillset – in my opinion his appointment further extends our industry leading position and shows our focus and investment to this exciting and ever changing commercial market place.
Share the CV love
Head of LCV