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23 February 2024
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Selling prices fall as used vans flood the market

Increased supply of used vans leads to a 6.5% drop in average selling prices in January, despite high demand and a positive outlook for 2024.

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A flood of used vans entering the market at the beginning of the year led to average selling prices falling in January, according to Cox Automotive. However, the remarketing giant also said demand was high and the picture for 2024 remained positive.

Its figures for January reveal an average value of £8,988, down 6.5% year on year, equating to a £633 drop. This was the result of an increase in return mileages, increase in return damage condition and additional volumes.

Cox’s Manheim auction and defleet businesses saw a record volume of vans last month in line with the growth in the new van market.

Manheim Auction Services (MAS) and Manheim Vehicle Services (MVS) were ‘chock-a-block’ for the opening month of the year, as they recorded 52% YoY growth of van arrivals – 10,372 vehicles in total.

This follows the increase in new LCV supply over the past year, which has caused many fleet, rental and leasing businesses to speed up the replacement of vehicles, resulting in an excess of stock filtering through to remarketing channels.

SMMT figures for December show 29,701 new vans were registered, a 36% YoY uplift. Manheim said that the “glut of new vans has now translated to something of a defleet frenzy at its sites”.

Manheim also revealed changes in stock profiles in the used LCV wholesale market. An average age of 64.5 months was recorded in January, 6.5 months lower than the same period last year and the lowest average seen at Manheim for 15 months. Despite this drop, average return mileages have remained high, with an average of 83,820 miles recorded – a notable 4% (or 3,372 miles) increase.

Matthew Davock, director of Manheim Commercial Vehicles, Cox Automotive, said:

The LCV market got off to an intensely busy start in January. Buyers clearly had forecourts to replenish and in our halls and online channels there was a palpable buying mood in the air. We saw a 29% increase in active buyer numbers compared to December, meaning that in January, some 3,112 LCV dealers interacted with the now daily Manheim LCV sales calendar.

The flood of stock has put a pressure on prices from a vendor perspective, but first-time conversions, at 76%, kept pace with year-on-year comparisons, giving a clear indication of demand. It is however right to note that conversion rates did show signs of easing towards the end of the month due to a combination of surplus volume and contracting retail demand. This will no doubt impact our key metrics but it’s far from being a negative picture.

End

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