It is all too easy to believe the media headlines as well as sound bites and
reports from within our industry.
Contrary to those reports I can confirm that Manheim has not seen any decline in used van values in the last quarter of 2007 – in fact, quite the opposite, average sale values rose successively throughout each and every quarter of 2007, finishing £363 higher than in Q1 at £3,681.
2007 started in Q1 and ended in Q4 with the same average ages (52 months) and mileages (72k) with increases in both recorded during Q2 and Q3.
Why has this happened?
Manheim’s dedicated CV teams have rolled up their sleeves and met the challenges head on.
Yes 2008 has been a challenging start.
Sale entries were the highest for two years.
The buyer activity improved week to week in January and we monitored and communicated this closely and will continue to do so.
Our 2007 rollout strategy of CV Live has been a key factor in this performance as was the world’s largest van sale we held at Colchester last November.
The CV market is robust.
Buyers have responded to an over-supply of duplicated stock, damaged stock and high mileage stock in an entirely predictable and logical way.
They have continued to pay strong money for the right stock and approached duplications, damage and high mileage stock with more caution.
Any talk of price re-alignment needs to reflect demand and supply in the
entire market, not specific segments, specifications or be related to vehicle
Manheim has seen an increase in days in stock reflecting this market; from an average of 18 days during the last two months of 2007 to 23 days in January 08.
Remember this reflects the increased volumes that hit auction
sites in Q4 2007.
These volumes are being absorbed by the market and auction entries
are now starting to return to track 2007 levels.
This is not to say less desirable vans have not attracted bids; they have; and when the highest hall/online bid is taken provisional these best offers, while falling short of the reserves, are submitted to vendors.
They are not failures but instead an opportunity to open a negotiation between vendor and buyer.