Cox Automotive reports a fruitful summer for LCVs
The summer months have been overwhelmingly positive for used LCV sales in the UK according to Cox Automotive. The company recorded a 32% year-on-year increase in the number of LCVs sold through its Manheim Auction Services brand during June, July and August, with 75.5% selling first time.
Cox Automotive reports the volumes it is handling are now comparable to pre-pandemic market levels, despite new LCV registrations still trailing c14% behind those seen in 2018/19. It represented over 300 vendors during this period.
Prices have now settled to what Cox Automotive believes represents the new normal for the LCV market. Cox Automotive’s analysis shows that the average selling price is now £9,364, down 1.7% year-on-year and 10.8% lower than the highs of 2021, but nevertheless 42% ahead of the pre-pandemic average. The average age of LCVs is now 67 months while average mileage is 78,555.
Matthew Davock, Director of Manheim Commercial Vehicles, Cox Automotive, said: “It’s been an outstanding summer for LCV sales, with activity in our lanes more than matching the recent heat wave. The appetite we’ve seen during this 12-week period points to a market that has established a new sense of normality. Prices have settled from the super-heated immediate post-pandemic high to what we believe will be the level we should expect for the rest of this year.
“The laws of supply and demand continue to assert themselves on the used LCV market. Despite the average van now commanding £2,795 more than its 2019 equivalent, it is 10 months older and carrying 9,222 more miles. The positive month-on-month increase in new LCV registrations recorded by the SMMT this year has helped see additional volumes reach the used market, but sustained trade demand means prices remain strong, despite a 12-15% price guide reduction for some models during same period. There is a particular shortage of sub 60,000 mile stock; in 2019, almost half (46%) of auction entries met this criteria, whereas now the proportion has fallen to just 24%.”
Last week, Cox Automotive announced it was extending its hybrid sales programme with the launch of a new physical sales from its Manheim site in Shotts, Scotland. Trade buyers are now, on average, just 58 miles from a Manheim physical commercial vehicle sale.