LCV prices at record high

Manheim reports record month for LCV prices

Manheim, the UK's number one commercial vehicle auction company, set new records again in October with an 18% year-on-year increase in average van sale values.

The remarketing giant reported a record average van selling price of £5,749, despite average damage increasing over the same period by 26% to £870; £172 higher than the same month in 2016.

The strongest results were seen in the £4500-£6500 sale bandings. Vans falling inside this band achieved an uplift of just over 3% year-on-year.

October also saw Manheim post record year-on-year growth in buyer audiences. The number of buyers attending physical auction events rose by 16% while online buyer attendance jumped by 19%. The renewed interest translated, with average conversion rates of 78%, to a 12% increase compared to October 2016.

On average, vans sold by Manheim in October were 59 months of age, four months younger than the same period in 2016 and recording 3,000 fewer miles. As predicted in Manheim's September market commentary, van de-fleet volumes continued to soften during October, with a further 4% reduction compared to prior month and a 18% reduction compared to August 2016.

October sale performances have been staggering and is further proof of a super-heated marketplace at Manheim
- Matthew Davock, Head of LCV at Manheim

Davock continues, "Buyer demand for our vendors' prime stock has outstripped supply, especially in the £4,500-£6,500 bracket and we have seen increased appetite from dealers to own stock in this range."

In addition to record figures, the shift to online buying picked up pace in October, with significant 100% year on year growth recorded in online-only auction events. When combined with Simulcast online bids in physical auctions, the group's figures revealed that 86% of LCV sales during the month attracted an online bid, with 38% of all vans sold to an online bidder.

"During October we launched additional two new vendors, both of which achieved 100% conversions and both benefitting from our industry leading results matched to the highest levels of customer service."

"As we enter November, the question is when the historic annual spike in supply will hit. Vendor feedback indicates de-fleet volumes are expected to rise, but whether this will roll over into Q1 2018 is still a consideration."

Commenting on the year as a whole, he said, "The first 10 months of 2017 have been incredible. Against all measures, and a predicted market decrease, we have grown our overall sold volume by 8% and extend our industry leading position. I'm entirely confident of the robust nature of the used van market and the outlook remains positive."