- Van prices remaining robust and still a staggering 62.2% stronger than pre pandemic levels
- LCV prices continue to perform ahead of the same period last year
- Mileage hits second-highest figure for the year
- Euro 6 demand remains robust
- But Cox Automotive advises caution ahead…
The wholesale LCV market enjoyed its second strongest month of the year to date with seven out of ten units selling first time at Manheim auctions across the UK throughout May 2022. The past few weeks also saw average selling prices bounce back, demonstrating strong market stability. On average, used van values improved by £510 during May compared to April.
During May van average selling prices continued to demonstrate strong robustness with high demand from fleet, OEM and rental customers at Manheim. The overall selling prices performing ahead of the same period in 2021 and a staggering 62.2% stronger than pre pandemic averages. This is despite challenging economic circumstances brought about by the cost-of-living headlines.
Euro 5 and 6 LCV selling prices remains stable during May
While demand remains healthy, available stock reached new highs for age and mileage, largely due to an influx of pandemic-worn vans being returned to the market. LCV mileages reached their second highest point of the year during May, with returned vans having an average of 88,679 miles on the clock, at 65.2 months old. Compared to the same period in 2021, vans are on average three months older, and with 15,370 more miles on the clock today at Manheim
Euro 5 and 6 stock continues to sell well, with 59% of sales Euro 6 products, and 41% Euro 5 throughout May. Selling prices in both segments remained robust throughout the month, with Euro 6 vans achieving £323 more on average but age and mileage reducing by one month and 3,966 miles respectively. Euro 5 prices also rose by an average of £56 compared to April, with age also slightly increasing by two months at 96 months, and mileage reducing by 3,217 miles to 114,915 miles on average.
Proceed with caution
While the wholesale market performed strongly during May and is demonstrating signs of resilience going into even more challenging months with supply and demand both expecting to fall, Matthew Davock, Director of Commercial Vehicles at Cox Automotive, is advising caution.
“With all the current headwinds facing the automotive sector, you can understand why caution remains the overall buzzword for franchise and independent dealers today. That said, improvements in the data for May demonstrate that the market is holding firm.
“We have seen LCV guide values decrease by 3.7% on average going into June at three years, 60,000 mileage LCV product; the largest single movement in a month for a decade and the third month in a row where we have seen LCV guide values reduce. It sounds negative but this should not come as a major shock, since guide value reductions were very much the norm during pre-covid times. Therefore, this is a sign that the market is returning to something resembling normal levels, in some respects.”
To illustrate how far the LCV market has improved during these unprecedented times, Manheim’s average selling price was £105 stronger in May 22 compared to May 2021, with average mileage over 15,000 miles higher and average age three months older in May 2022.
Davock summarised: ““With the SMMT headlines showing a 25% reduction in new LCV transactions, it is highly likely we will see further shortages in the wholesale market during the months to come.
“While the wholesale LCV market has not had the buoyancy we saw last year, guide values reducing more in line with market conditions will help ensure it remains resilient during the summer period heading our way.