Fleet News

Wholesale used van market remains stable as values increase 1.1% in January, reports Manheim

Manheim’s latest monthly Market Analysis for Vans reveals that average wholesale used van values increased by 1.1% (£46 to £4,059) in January.

Overall average age increased by two months to 61 months, but average mileage fell 567 miles to 81,878. When compared with January 2011 average values are 1.9% (£79) lower, average age is 11 months higher and mileage is up 8,249.

Most of the volume vehicle segments experienced very little movement in values. Examples of other increases in values in January include Tippers, up 4.7% (£225 to £4,985), Boxes & Lutons up 7.0% (£410 to £6,261) and 4x4s up 1.6% (£123 to £7,610).

The increases in values were despite a rise in average age for Tippers of four months to 71 months and for Boxes & Lutons of 17 months to 66 months.

James Davis, director of Commercial Vehicles, Manheim Remarketing, said: “The real story in the wholesale van market has been the significant shift in stock profile seen over the last 12 months.

“Not since Manheim began reporting some seven years ago has such a shift been observed. This January the average age of vans sold by Manheim was nearly a full year older than the same month in 2011, mileage was up by just over 11% yet average sale values were only down by £79.

“As predicted, the wholesale market has seen an improvement in conversion rates and bid values in January. Buyers are attending in large numbers online and in the hall. Manheim’s auction centres are still breaking online activity and attendance records.

“But large attendances don’t always translate into strong sale performances. Perhaps unsurprisingly it is the make-up of each sale that determines that.”

He added: “For the first time there is now evidence of a three tier market. There are significant volumes of older higher mileage vehicles and there is also good availability of sub-3 year product as daily rental fleets experience their typical seasonal replacement and de-fleet activity.

“In addition, there are the popular mid range, average age/mileage vehicles, which because of increasingly short supply are attracting intense bidding from buyers eager to get their hands on these vehicles.

“Duplicate stock continues to require strategic placement and despite slower retail activity, will readily find customers although buyers are very sensitive to damage. Those vendors that factor in vehicle condition and attend sales to maximise every bid opportunity are enjoying the strongest results.

“The strength of the retail van market will ultimately determine any further improvement in the wholesale arena.”

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