Online bids soared in competitive October LCV market
84% of vehicles sold first time at Manheim in October
47% of commercial vehicles sold online, up 11% year-on-year
Manheim buyers reported positive retail activity in September and October
Increased volume met strong buyer demand at Manheim in October as 84% of LCVs sold first-time.
The UK’s number one CV auction company recorded a 13% MoM increase in volume sold, while the number of first-time sales was up 4% on the September figure.
Matthew Davock, Manheim’s Director of Commercial Vehicles explains: “The first-time conversion rate is a very important measure for us, because it’s a strong indicator of demand in the market.”
“We sell a huge variety of stock, so when buyer interest is low those vehicles that need recon work typically take longer to sell. That just wasn’t the case in October as buyers faced fierce competition online and in the lanes.”
The competitive marketplace translated to a slight uplift in price, and performance against the guide price improved by 2.3% MoM.
Use of Manheim’s online channels also continued to grow in October, and 47% of vehicles were sold to online bidders, an increase of 11% YoY. As a result, Manheim saw average days-to-sell fall to just 9.7 days, down a full six days on October 2018.
“In this buoyant wholesale market our online sales channels are increasingly important for buyers looking for stock, and more vendors are keen to remarket stock 24/7 and reap the rewards of reducing their days to sell,” explained Davock.
“In October, 13% of the LCVs we sold were bought online before they reached any physical auction, taking an average of just five days to sell.”
Looking ahead Davock expects to see the market remain healthy in November, with consistent wholesale volume and buyer interest:
“Our buyers reported positive retail activity and good signs of stability in October, and with a strong stock pipeline at Manheim, November is looking good.”
“Towards the end of the month, stock with excess damage will start to be more challenging as buyers weigh up preparation time against potential time-to-sell. Vendors would be well-advised to take this into account when setting a reserve for poorer stock profile vehicles as we move into December.”