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Record-breaking year for HGV sales at Manheim

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Cox Automotive reports best year yet for HGV sales at Manheim Auction Services.

Over 25 million pounds worth of assets sold during 2022.

New HGV hub locations and sales programme reduces de-fleet transport miles and CO2 movement costs – average savings £488 per truck.

Largest national HGV auction footprint with 10x locations in the UK.

Used truck values climb to highest ever point – rising by £6,609.

Euro 6 trucks increase to £20,697 on average.

Euro 5 or older trucks rise to £7,159 on average.

Manheim Auction Services is riding high following a record-breaking year for its HGV division. The business has built a unique proposition which includes the largest national auction footprint for truck, plant, and machinery (ten locations across the UK) plus an innovative sales programme which reduces de-fleet transportation miles and CO2 movement costs – saving customers on average £488 per truck sold.

Summer spike for used truck values

Q3 proved particularly fruitful for the HGV sector with £7 million pounds worth of stock sold on behalf of 88 separate vendors, to no less than 206 different global buyers, illustrating a 28% increase year-on-year. Used truck values increased with Manheim reporting the following:

HGV values rose to their highest ever point – by £6,609 versus pre pandemic averages.

Euro 6 trucks increased to £20,697 on average, demonstrating a year-on-year growth of 18% or £3,068, with an average age of 66 months and 58% of the volume sold.

Euro 5 or older trucks rose to £7,159 on average, demonstrating a year-on-year growth of 34% or £1,805 with an average age of 296 months and 42% of the volume sold.

Days to sell dropped below 10 days during the quarter 2022 and the first-time conversion rate topped 83%.

Chris Mynott, National HGV Manager, Manheim Auction Services explained more: “The seasonality factors that normally dominate Q3 didn’t come to fruition this year; buyers were missing on holidays and prices did soften a little, but it was such a brief period we didn’t feel the full effect. The general shortage of quality used HGV units, due mainly to the ongoing problems with supply of new trucks, has ensured wholesale demand has remained strong.”

The auction business saw an average of 400-500 buyers from across the globe joining events online and in person, with frenzied bidding activity. As we move into the festive period, demand and sale prices are expected to continue their upward trajectory, particularly for sought-after Euro 6 units, whilst the value for money older Euro 5 trucks will also continue to sell well.

“A spike in sales and price for rental spec trucks was witnessed in September also – buyers were quick to get their orders in and avoid getting caught out like many in previous years,” said Mynott.

In addition to a healthy performance for the UK HGV sector, the export market has also proved particularly strong of late, no doubt helped by the weaker pound. During the summer months Manheim Auction Services secured many sales destined for African nations and the Middle East. Buyers snapped up batches of trucks, filling spaces on vessels that might be the last ones of the year to depart from the UK.

New HGVs are slow, but a sure thing

The new truck market is making slower progress but is still heading in the right direction. Demand for HGVs in the UK has remained robust, particularly for articulated trucks and tractors, along with an influx of new truck registrations, tracking just 2% behind 2021 levels.

However, the global shortage of semiconductors and raw materials including steel and aluminium has impacted manufacturing, constraining order delivery and producing long lead times. Consequently, the sector is down 33%, compared to pre-pandemic 2019 averages.

Matthew Davock, Director of Commercial Vehicles, Cox Automotive revealed: “The marginal growth in the past three quarters was driven by increased demand for artics, up 21% year on year to 6,166 units, with a 14% increase in registrations. The number of newly registered rigid trucks, meanwhile, fell by a further -10% and -13 in the year to date, although the segment has still accounted for more than half (51.5%) of the market this year.”

The sector continues to navigate significant global supply shortages amid high inflation and rising fuel and energy costs, yet overall demand remains. To ensure the necessary fleet transition from fossil fuels to modern technologies, the government must encourage new truck acquisition and HGV charging infrastructures will need to be accelerated.

Davock added: “The HGV market is sturdy and there’s plenty to be positive about both in the used and new vehicle market dynamics; we are fully committed to building on these fantastic results and will endeavour to provide our customers with the most cost-effective solutions whilst continuing to increase our auction market share in the UK.”

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