CV market tracker - July 2019

LCV market sizzled in July, says Manheim

July CV market data

The used LCV market put in a strong performance in July with good levels of buyer demand and stock availability, according to the latest results from Manheim.

The UK’s number one CV auction company recorded an 8% increase in LCV volume YoY, with higher numbers of both daily rental and national fleet and leasing vehicles available at auction.

Stock mix remained consistent with recent months, and average age and mileage held relatively steady MoM.

77% of LCVs offered by Manheim in July were sold at the first time of asking, up 3.2% MoM, and Manheim also recorded a slight improvement in performance against guide price (up 0.7%).

Matthew Davock, Director of Commercial Vehicles at Manheim, said: “After an unpredictable June, the market picked up in July, and we saw increased buyer demand across our online and physical auctions.”

“That said, buyers were still fighting hard for the cleanest and most desirable stock, and mileage played a major part in buyers’ appetite to purchase.

Vehicles with excessive damage and higher extended mileage proved the biggest challenge, affecting the overall first-time conversion figure if not priced correctly.”

“In the 4x4 pick-up sector a slight adjustment to guide pricing helped to improve auction conversion rates, but overall condition and specification were key, and vehicles with rear-tops fitted proved significantly more popular with buyers.”

In terms of buyer trends, Manheim’s online auction channels continued to grow in popularity during July, with 42% of all commercial stock sold to online buyers.

This figure represents continued growth in the use of Simulcast, Manheim’s award-winning online bidding tool, as well as a record number of online-only sales. In July, 11% of LCVs were sold online before ever reaching a physical auction.

Davock concluded: “While market conditions improved in July, there is still some lingering uncertainty across the used LCV sector.”

“With the holiday season in full swing, August looks set to be a steadier month with a slightly lower volume of de-fleet vehicles. This will give the sector an opportunity to gear up ready for what I feel will be a busy LCV auction period in September and October.”

 

Latest from Cox Automotive

16th August, 2019

Cox Automotive forecasts 7.8 million used car transactions in 2019 after strong H1 used car performance

We've reaffirmed our full year forecast of 7.8 million used car transactions in 2019 following the release of Q2 figures from the SMMT.

Read more
13th August, 2019

Market tracker - July 2019

July trading started reasonably well and stock availability in the wholesale market did improve in July, according to results released today by Cox Automotive.

Read more
6th August, 2019

Dealers react as dip in diesel demand hits used car market

Declining demand for diesel stock is starting to impact the used car market according to the latest NextGear Capital sentiment survey.

Read more
6th August, 2019

How do you create long-term plans in automotive?

In the first of a new blog series, Craig Mailey, Chief Strategy and Marketing Officer for Cox Automotive UK, explains how automotive businesses can create a long-term strategy in a changing market

Read more
More articles