Strong Demand For Cleaner Second-hand Vans

The second-hand van market paints a fragmented picture for dealers with pockets of strong activity but also areas where vehicles are struggling to attain their asking price as buyers pick and choose what they think will sell on their forecourts.

There is plenty of auction data suggesting that clean, Euro 6-compliant vans are fetching good money but older ones needing prep work and nearly new ones which are close to the price of a new van, are struggling to compete. The offers available at franchised dealers for brand new vans are getting increasingly strong, turning the market towards new and reliable vans.

Manheim said that despite the usual summer slowdown LCV volumes were healthy last month, up 3% on 2018, but slow retail activity translated into lower levels of buyer interest in the auction hall. Average vehicle price fell for the second month in a row as buyers opted for retail-ready vehicles, while LCVs with high mileage or in need of reconditioning struggled to reach the cap hpi value.

Matthew Davock, Manheim’s Director of Commercial Vehicles, said:

“There was still plenty to be positive about as one in seven LCVs sold first time at Manheim, but we have recorded a YoY increase in age and mileage. In turn, more vehicles being returned with higher damage was evident through our auction lanes, and this had a direct impact on first-time conversion rates and overall buyer appetite.

“Looking ahead, current market conditions are set to continue in July as we enter the summer holiday period. On a positive note, all indicators still show a very healthy used van market and the expected fall in valuations from the pricing guides will help to improve overall conversion rates.”

Very Healthy Used Van Market

Louise Wallis, Head of the National Association of Motor Auctions, said there is a ready market for the newer generation, more eco-friendly vans, adding:

“NAMA members expect the Euro 6 van market to stay strong as government clean air policies encourage businesses to purchase these vehicles.”

Good Retail Demand For Used Vans Mirrors Market For Brand New Ones

The SMMT says that H1 2019 saw six consecutive months of growth with the main areas of growth being vans under two tonnes and larger ones between 2.5 and 3.5 tonnes. Registrations of brand new LCVs up to 3.5 tonnes grew by 14% in June to 39,929 units. Year to date, the market overall is up 9%.

These two segments of the market grew by 10% and 22% respectively. Following last month’s increase, vans between 2.0 and 2.5 tonnes saw a drop of 3.6% as many buyers moved up to larger models.

Sue Robinson, Director of the National Franchised Dealers Association, said:

“It is extremely positive to see a double-digit increase in sales of new light vans, which marks six months of consecutive growth in 2019.

“Sales of light commercials remain at high levels supported by a number of factors including the UK’s robust online shopping sector, where these vehicles are used for delivery purposes. With declining new car sales, the UK van market depicts an interesting picture of the UK economic situation. While several businesses and self-employed people are renewing their old vans, many private buyers are delaying their car purchases because of the current uncertainty.

“It is encouraging to see large numbers of van operators switching to new, Euro 6 vans. Going forward, we anticipate the market to continue to perform well”.

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