Manheim reports record month for LCV prices
Manheim, the UK’s number one commercial vehicle auction company, set new records again in October with a staggering 18% year-on-year increase in average van sale prices. This saw the remarketing giant’s average van selling price hit a record monthly high of £5749, despite average vehicle damage increasing over the same period by 26% to £870 - £172 higher than October 2016.
October also saw buyer audiences grow versus last year. The number of buyers attending physical auctions rose by 16% whilst online buyer attendances jumped by 19%. This translated into more sales, with average conversion rates of 78% - a 12% increase compared to the same time last year.
On average, vans sold by Manheim last month had 3,000 less miles than October 2016, and were 4 months younger at 59 months of age. As predicted in Manheim’s September market commentary, van de-fleet volumes continued to soften during October, with a further 4% reduction compared to September, and a 18% reduction compared to October 2016.
Matthew Davock, head of LCV at Manheim, said: “October sale performances have been staggering and is further proof of a super-heated marketplace at Manheim. Buyer demand for our vendors’ prime stock has outstripped supply. The lower volume continues to play a major part in the current marketplace and has certainly fuelled the overall market performance and appetite”.
October proved to be the strongest performance month of the year when comparing overall sale prices to guide values. The strongest results were seen in the £4500-£6500 sale bandings. Vans falling inside this band achieved an uplift of just over 3% year-on-year. With stock profile and condition both being significant driving factors, there has been an increased appetite to own stock in this price bracket.
The shift to online buying is continuing with significant growth recorded in Online Auctions. Whilst both physical and online auctions are supported by the same award-winning Simulcast technology, October saw a 100% year-on-year increase in vans sold in online auctions. Online bidding in physical auctions also continued to show strength. Overall, October saw a record breaking 86% of all Manheim’s vans attract an online bid with 38% of all vans sold to an online bidder.
During October, Manheim launched two new vendors, Network Rail and Zenith, with both achieving 100% conversions. Matthew Davock said: “Both our new vendors have witnessed our industry leading results matched with the highest levels of customer service. We will continue to provide our valued buyers with even more high quality stock, available to bid and buy in the largest number of sale channels that suit their varied needs”.
Matthew continues: “Overall the first 10 months of 2017 have been incredible. Against all measures we continue to break records and extend our industry leading position. Year-to-date we have grown our overall sold volume by 8% against a 2017 new van market predicted to finish 3% behind 2016’s record registration volumes. I’m entirely confident of the robust nature of the used van market and the outlook remains positive. As we enter November the question on everybody’s mind is when the historic annual spike in supply will hit. Vendor feedback indicates de-fleet volume are expected to rise, the question remains when and whether it will roll over into Q1 2018”.
What’s currently hot
• Blue VW Caddy Maxi vans are making £200/400 above book valuations
• Old shape Vivaro/Trafic in good demand on 13/14 plates - £200/400 above
• New model Vivaro/Trafic performing well at 3 years – above £300/£500. Slightly more sensitive at 18-24 months.
• Mercedes Sprinter MWB and LWB in good demand, particularly clean examples. £500/700 above
• Transit custom also in good demand particularly if Trend or Limited spec. £200/300 above
• Transit Dropsides making strong money both new and old shape. However be careful on single rear wheel new model tippers as they are price sensitive, but yet not reflected in the current guide
• Old shape Transit SWB and MWB continue to sell well at 4/5/6 years. £200/400 above
• Citroen Relay and Peugeot Boxer performing well compared to book, and in strong demand if clean. £500/600 above
• Fiesta vans are very much in demand this month with excellent values achieved vs the guide. £200/400 above
• Fiat Doblo’s on 64/15 plates performing well. £200 above guide valuations
What’s not so hot
• Ford Transit 17 seat Minibus. Examples with tacho’s fitted should perform better and air conditioning will also add value. Basic models selling for up to £1200 behind guide valuations.
• 4x4 market continues to harden, especially 16 plate and newer. Some models up to £1500 behind guide prices
• Basic Specification Ford Custom and Ford Connect vans are up to £500/700 behind guide valuations
• 2 year old product with low specification and low mileages continue to show low demand and very price sensitive. Depending on duplication models £750/800 behind guide valuations