Alex Wright, commercial vehicle sales director at Manheim Auctions, said: ‘The market has been exceptionally strong for such a long period of time that it simply had to realign and it is only right that the summer months mark the time for this to happen.
‘Whenever the market slows, people are quick to panic and predict doom and gloom. However, vehicle depreciation must happen and is as inevitable as night following day. Vendors and buyers should not panic but research the market carefully, enabling them to use any situation to their advantage.’
Despite prices levelling out, as always there are areas of the market that buck the trends.
Chassis cab derivatives, tippers, dropsides (over 13-ft), Lutons and boxes are all performing well and Wright puts this down to the market being so adaptable. With a shortage of tippers in the £5,000 bracket, those that do appear are being snapped up.
The Ford Transit is still the most popular vehicle in this sector.
Wright said: ‘When the market does realign, the first tell-tale sign is choosy buyers resulting in the high mileage end of the market dropping off and the price divide between low and high mileage vehicles becoming much more noticeable. During the strongest months of the year, buyers were happy to purchase higher mileage vehicles if low stock was not available – with their more cautious hats on, they are no longer willing to purchase unless vehicles exactly match their specifications.’
There are a large number of two to three- year-old car-derived vans available in the halls, giving buyers plenty of choice. In general, buyers are picking CDVs with side loading doors and the more powerful engines – the 2.0 HDi Citroen Berlingo is in full demand, selling for as much as £3,225 (01 Y with 75,339 miles on the clock).
Larger vans such as Renault Trafic, Vauxhall Vivaro and Nissan Primastar are also sought after and selling well and the larger panel vans with the least amount of work required are being snapped up.
The 4x4 market remains an interesting niche area, allowing retailers to buy vehicles without the need to worry about vehicle depreciation. Just a few months ago used double-cabs were selling for just a few hundred pounds less than new. This area of the market has levelled out to an extent but are still selling extremely well and out-performing any other area of the LCV market.