Positive quarter ends on a high note for LCVs
The positivity felt in the UK used LCV market throughout the year will continue as we head into the final stretch of 2023 according to Cox Automotive. A 40% year-on-year increase in the number of LCVs sold through the company’s Manheim Auction Services brand in September was recorded, with more than three quarters (77.8%) selling first time.
Prices have continued to grow too, with £10,133 for September representing the strongest monthly average selling price for LCVs in the past 12 months. That’s a £404 increase compared to the previous six-month averages and only slightly less than the same period in 2022.
Overall de-fleeted LCV volumes rose in Q3. The 12-week period saw 17,344 vans arrive at Manheim’s Auction Services and Vehicle Services locations, representing a 38% year-on-year increase. Euro 6 derivatives made up 76% of all LCVs sold in the quarter and continued to attract the most attention from buyers. The average Euro 6 van sold was 49 months old with 68,736 miles on its odometer.
Matthew Davock, Director of Manheim Commercial Vehicles, Cox Automotive, said: “Q3’s performance repeated the positive pattern we’ve been experiencing all year and I see no sign of that abating as we move into the final months of 2023. The average selling price for vans returned to five-digit figures in September and the number selling first time also increased by 5.6%, which is great news for the LCV marketplace.
“Also notable is the volume of Euro 6 stock now passing through our auction lanes, with three in every four vans sold in September fitting this description. With the number of new van registrations growing steadily, and de-fleet volumes rising accordingly, it seems the cork is finally well and truly out of the supply bottle.”
Euro 5 and older vehicles, which made up the majority of other stock handled in the period, are currently proving to be less attractive to buyers, with prices falling by an average of £288 versus the previous quarter. Matthew believes this is down to their age, mileage and condition and the growing number of Ultra Low Emission Zones meaning more buyers are now avoiding non-compliant vehicles.
The level of used EV LCVs sold at Manheim locations also recorded a new quarterly record, with 133 selling between June and September. This represents a staggering 380% increase versus the last three-month averages. Overall stock profile is very different in this vehicle segment with average age and mileage being just 36 months and 15,593, and the average selling price £9,170.
Matthew concludes: “The EV segment has seen some signs of positivity of late and the fact we have sold 133 units during the quarter is encouraging. That more and more dealers are now getting to handle and sell these assets will only build confidence.
“The overall LCV market has remained more than robust over the past 12 weeks and the quarter has certainly finished on a high note. Looking ahead, we are expecting the positivity to continue despite the likely easing of overall volumes as many fleets and rental operators hang onto vehicles to cope with the busy festive period. Despite this, the final stretch of 2023 is still set to be a busy and bumper period for UK commercial vehicle sales.”
Last month, Cox Automotive extended its hybrid LCV sales programme with the launch of new physical sales at its Manheim site in Shotts, Scotland. Trade buyers are now, on average, just 58 miles from a Manheim commercial vehicle sale.