Vans waiting for auction at Manheim

CV Market Tracker - June

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June wholesale commercial vehicle data

Manheim reports seasonal slow-down in June LCV market.

Figures released today by Manheim reveal an unpredictable LCV market in June with pockets of positivity off-setting the usual summer slow-down.

Overall, LCV volumes were healthy across the month, up 3% on 2018, but slow retail activity translated into lower levels of buyer interest in the auction hall. Average vehicle price fell for the second month in a row as buyers opted for retail-ready vehicles, while LCVs with high mileage or in need of reconditioning struggled to reach the cap hpi value.

Matthew Davock, Manheim’s Director of Commercial Vehicles, said: “The strength of the market over the last three years has reduced the impact of seasonal fluctuations, but we certainly saw the traditional summer slow-down this June.”

“There was still plenty to be positive about as one in seven LCVs sold first time at Manheim, but we have recorded a YoY increase in age and mileage. In turn, more vehicles being returned with higher damage was evident through our auction lanes, and this had a direct impact on first-time conversion rates and overall buyer appetite.”

“We also continued to see higher than average numbers of 4x4 pickups at auction, up 38% YoY. There is certainly buyer interest in these vehicles but the guide valuations v retail price competition, coupled with overall volumes in the market are a concern, and vendor flexibility is crucial in achieving a first-time sale.”

In terms of buyer activity, June bucked the trend of recent months as physical auction attendance increased by 14% MoM. Online sales penetration was down 5% compared to May, but still accounted for 36% of all vehicles sold.

Davock continued: “In an unpredictable market, many buyers choose to attend the auction in person to gain feedback and keep an eye on wholesale performance and pricing.”

“Our trade buyers reported slow retail activity across May and June, particularly in the nearly-new marketplace, where dealers are struggling to compete on price and finance with heavily-promoted new-van offers, the gap between new and used is simply too close.” 

“Looking ahead, current market conditions are set to continue in July as we enter the summer holiday period. On a positive note, all indicators still show a very healthy used van market, and the expected fall in valuations from the pricing guides will help to improve overall conversion rates.”

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