Manheim, the UK’s number one commercial vehicle auction company, recorded a fantastic performance in January across its LCV events, highlighting a buoyant and confident market.
It achieved record-breaking conversion rates and a healthy 1.5% year-on-year increase in average performance against guide prices.
The average van selling price hit a record high of £5,645, the strongest January average selling price on record. Data released by Manheim also shows the average age reduced slightly but was counteracted by average mileage increasing for the sixth month in a row.
Matthew Davock, Head of LCV at Manheim, said: “As we start the year, I am very interested to see how the market performs throughout 2018. If January is anything to go by, we should all be excited about the health, appetite and dynamics of the used van market sector. January has been amazing and continues to surprise by outperforming previous months.”
In terms of mileage, Manheim figures for January reveal that this continues to rise, recording a six-month high at 76,945, (3,500 more miles than January 2017). While average age remains fairly consistent at 58 months, (compared to 57 months in January 2017).
Davock added: “As predicted in our December market update, van de-fleet volumes have returned to normal numbers for January, which contrasts with the large volumes seen during Q1 2017. The start to 2018 feels like a different market place.
He continued: “Interestingly the market is down 16% year-on-year against January 2017 but up 5% against the same period in 2016, which suggests that 2017 was an unusually strong year and we may now be settling back in to a more predictable rhythm.
“Performance and overall first-time conversion rates have been record-breaking and are further proof of a healthy van marketplace at Manheim. First time conversion rates increased by 12% year-on-year. We also saw an increase of 1.5% against guide price, the highest rise we’ve seen for 14-months, achieving a healthy average of 97.39% against guide in January.
Manheim continues to post record year-on-year growth in buyer audiences. The number of buyers attending physical auction events rose by a further 16% while online buyer attendance jumped by 21% with more than 1,800 buyers purchasing a commercial vehicle in January.
In addition to these record figures, the shift to online buying picked up pace again in January, with significant 100% year-on-year growth recorded in online-only auction events and Manheim held six special events for its vendors in January.
When combined with Simulcast online bids in physical auctions, Manheim figures revealed that 87% of LCV sales during January attracted an online bid, with 37% of all vans sold to an online bidder.
In conclusion, Davock said: “The data shows real optimism in the market as we start the year on the back of the strongest recorded average selling price on record, the market is definitely looking strong. We are witnessing great belief and confidence in the van auction arena at Manheim and a robust nature in the marketplace.”
Market gets ‘tougher’ in January as new car sales drop by 9%
A 9% drop in new car sales compared to the previous year confirmed that the “market is getting tougher” but used car opportunity remained strong in January, according to enquirymax.
Used sales increased by 0.5% during the first month of the year as new sales dropped 9% against the same month in 2017, it said.
Finance penetration rose, thanks to a 13% jump in PCP sales between January 2017 and 2018, while contract hire remained static.
Enquirymax’s managing director David Boyce (pictured) said: “It is clear the market is getting tougher. January in 2017 was a big month for new and used car sales, and while the drop in new sales is in line with the market, it is good to see used sales remain strong.â€
The analysis of data from 700 dealers in the UK showed telephone enquiries dropped by 8% while internet leads increased by 19%. Leads from manufacturers increased by 20% over the same period.
“The internet continues to prove a valuable channel for leads, and it is important that all the money spent bringing customers to your website, or virtual forecourt, isn’t wasted through poor management of the enquiry,” said Boyce.
“Buyers expect a prompt and seamless response.”
