Auction firm Manheim has reported August 2020 broke new records for sales of used LCVs, with values up a whopping 28 per cent year-on-year.
Data published by the company shows August 2020 bucked the traditional seasonal slowdown and the month set an all-time average selling price record. August followed on from July – another record-breaking month, as reported by Car Dealer.
August 2020’s used van values are 28 per cent higher year-on-year, up from £5,680 to £8,158.
However, the firm reports the growth is not due to a lack of wholesale supply, as the volumes of vans in auction are only tracking seven per cent behind August 2019.
First-time conversion rates were also strong in the month, standing at 87 per cent and up 13 per cent compared to the same period last year.
Manheim says the latest data underpins ‘significant’ retail demand for commercial vehicles as the UK exits full lockdown.
Since lockdown, consumers’ shift from physical to online shopping has driven the demand for used LCVs.
August’s stock profile showed the demand for Euro 5 and pre-Euro 5 vans stands out with average selling price in August 41 per cent higher than pre-lockdown.
Average age in August was only four months younger with 5,000 fewer miles, and 58 per cent of vans sold in August were Euro 5 or older. Euro 6 vehicles also enjoyed a rally in price with values in August being 15 per cent higher than pre-lockdown.
We may be approaching the ceiling of used wholesale values
Matthew Davock, Manheim’s director of CV, said: ‘Used van values are up a third over the same month in 2019, with 90 per cent of vans finding a buyer at their first time of asking. These post lockdown market performances are exceptional.
‘Buyers are now logging onto more online sale events meaning the active audiences are larger and vendors are liquidating stock faster for optimum values.
‘The health and safety of our team members, customers and communities remains our priority, and we continue to monitor government guidelines.
‘It’s clear that our innovative digital auction proposition is now firmly imbedded with our buyers and vendors alike.’
Davock concluded: ‘We may be approaching the ceiling of used wholesale values. Due to extended lead times and supply chain pressures, I believe that the next 12 months will continue to be a robust record-breaking period for LCV market activity in the used sector.’
James Davis, customer insight director, Cox Automotive, added: ‘We are in uncharted territory in the new and used CV markets.
‘August’s new van market was down 16 per cent year-on-year but traditionally the month is quieter pre-September.
‘The latest SMMT forecast sees 2020’s LCV registrations down 36.4 per cent over 2019 with 269,000 vans, bouncing back in 2021 to 318,000 new vans.’