Dealers See Strong Business In Used LCVs
- November 11, 2019
- Posted by: John Swift
- Category: Automotive Industry
Dealers are stocking up with second-hand vans and LCVs as a plentiful supply at auction was met by increasing demand as a leading remarketer said that buyers had to bid competitively to stand a chance of getting the vehicle.
Manheim reported that first-time sales of commercials stood at 84% in October, up slightly on September’s figure, and it saw a month-on-month growth of 12% in volume sold.
Matthew Davock, Manheim’s Director of Commercial Vehicles, said:
“The first-time conversion rate is a very important measure for us, because it’s a strong indicator of demand in the market. We sell a huge variety of stock, so when buyer interest is low those vehicles that need recon work typically take longer to sell. That just wasn’t the case in October as buyers faced fierce competition online and in the lanes.”
The competitive marketplace translated to a slight uplift in price, and performance against the guide price improved by 2.3% MoM.
Use of Manheim’s online channels also continued to grow in October, and 47% of vehicles were sold to online bidders, an increase of 11% YoY. As a result, Manheim saw average days-to-sell fall to just 9.7 days, down a full six days on October 2018.
Positive Retail Activity and Stability
“In this buoyant wholesale market our online sales channels are increasingly important for buyers looking for stock, and more vendors are keen to remarket stock 24/7 and reap the rewards of reducing their days to sell. In October, 13% of the LCVs we sold were bought online before they reached any physical auction, taking an average of just five days to sell.”
Looking ahead, Matthew said he expects to see the market remain healthy in November, with consistent wholesale volume and buyer interest, adding:
“Our buyers reported positive retail activity and good signs of stability in October, and with a strong stock pipeline at Manheim, November is looking good.
“Towards the end of the month, stock with excess damage will start to be more challenging as buyers weigh up preparation time against potential time-to-sell. Vendors would be well-advised to take this into account when setting a reserve for poorer stock profile vehicles as we move into December.”