Van values up at Manheim as age and mileage fall
Welcome to my April blog on the LCV market place at Manheim. During the month de-fleet volumes have fallen leading to an overall decrease in sale entries. As a positive, there has been less stock duplication. When balanced with seasonal bank holiday effects, we have delivered robust market performances.
Firstly, I would like to thank all customers who came to see us at the CV Show in the NEC. The show again broke all previous records, with over 200 visits, the Spy Van and quality time spent discussing all things CV.
During April, the average selling price of vans sold by Manheim, the UK’s number one commercial vehicle auction company, rose by 13.8% from the same month in 2016, to £5,154.
With Easter and bank holidays dominating the month of April, we only had 18 active selling days. Overall activity was not as strong as the same month in 2016 or the first quarter of 2017. Bank holidays impacted the general market mood and we witnessed a slightly tougher atmosphere in the commercial vehicle market than we have seen so far this year. That said, our vendors enjoyed strong sales performances in April. There was a seven month reduction in the average age of vans sold (vs April 2016, it was down to 63 months) and average mileage fell by more than 10,000 miles year-on-year, to 74,731.
Following a record breaking first quarter, in terms of the number of vans sold and conversion rates at Manheim’s CV auctions, ‘activity’ was the buzz word for April. While overall buyer footfall and clickfall remained healthy for a bank holiday period, appetite and buyer activity seemed mixed and slightly down on previous months. Many buyers were reporting April was their slowest retail month of the year.
During April – the following has been noticeable in the hot and not so hot categories
What’s hot to the guide• Ford Transit 280 SWB
• Ford Custom - Limited spec
• Ford Connect (new shape) - Limited spec
• Nissan NV 200
• Ford Transit 350 LWB Medium Roof
• Volkswagen Transporter 140ps with specification
• Renault Kangoo Maxi
• Mercedes-Benz Sprinter XLWB and Metallic LWB
• Volkswagen Caddy Trendline and Highline
• Ford Fiesta (new shape)
What’s not so hot to the guide• Ford Transit 350 LWB High Roof – 11 to 13 plates - up to £1,200 behind
• Volkswagen Transporter - Base spec 102ps/84ps – 62 to 15 plate – up to £1,200 behind
• Citroen Dispatch/Peugeot Expert – 12 to 15 plate – up to £800 behind
• New Shape Ford Transit 350 L3/H3 – 14 to 15 plate - up to £600 behind
• Old model Vauxhall Astra, Corsa and Combo – 10 to 12 plate – up to £500 behind
• Chassis Cab/Tipper/Dropside/Luton - 12 to 15 plate - up to £1,500 behind
• Mercedes-Benz Vito – 12 to 14 plate – up to £1,200 behind
• New Shape Citroen Relay and Peugeot Boxer – up to £1,000 behind
• Ford Custom Base in white - up to £800 behind
• Toyota Hilux/Ford Ranger/Volkswagen Amarok/Nissan Navara – 13 to 15 plates with low mileage – up to £1,200 behind
• Mercedes-Benz Sprinter 313 LWB in white – up to £700 behind
Our Online Auctions continue to go from strength to strength with a 45% increase in vans sold through this channel year on year. We’ve delivered a series of Online Auctions, uniquely featuring pre-selected stock, with vendors enjoying market leading results in terms of conversions and sales performance.
While buyer activity in absolute terms may not have been as high as previous months, the growth in our buyer base in the first quarter means that we are very well-placed to capitalise on the opportunity that the rest of the year presents.
I’m confident that buyer activity will remain healthy in the coming months. In my opinion, the slight decrease in de-fleet volumes is good news for the LCV sector. Our ever important buyer base continues to grow. 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 buying stock. All this activity is underpinned by the continued growth of Cox Automotive sister businesses NextGear Capital and Motors.co.uk.
Vehicle condition remains key. April saw a £461 year-on-year increase in average damage on de-fleeted stock. As we begin to encounter seasonality we continue to focus our vendors on realistic reserve setting given current market dynamics, to ensure that they continue to enjoy healthy conversion rates.
Only a couple of weeks to go until I get to auction off our very own James Davis’s Spy Van! On Monday 22nd May his immaculately restored 30 year old Ford Transit, a one owner ex-HMRC surveillance van, goes under the hammer at Shepshed - with 100% of the proceeds going to The Alzheimer’s Society. It’s a cause close to many hearts - including James, as his Dad was diagnosed seven years ago. See the restoration story unfold here facebook.com/Therestorationvanman. He’s looking to raise £5,000 so if you can see your way to support his fundraising efforts just visit justgiving.co.uk to make a donation.
May is gearing up to be an awesome month, seeing the launch of our two lanes at Gloucester plus Colchester’s new processing facility. We’ll continue to offer the best selection of quality vans from the UK’s leading vendors. Tune in to see how they perform in a month’s time. Have a great May all and thank you again for your input and very much valued business and continued support. Until the next time keep ‘Sharing the Love’ for all things CV.