The LCV wholesale market proved unpredictable in May as two bank holidays, and softer retail activity impacted buyer demand.
Data from Manheim for last month shows LCV arrivals rose by 12% month-on-month, while the average selling price dipped 2% to £5,862. Age remained static compared to the previous month, standing at 63 months while mileage was down 2.4% to 80,982.
First-time conversion rates fell slightly to 76.7% as weaker retail demand affected the wholesale market. However, Manheim noted continued strong online activity.
Matthew Davock, director of commercial vehicles at Manheim, said: “While physical auction attendance dropped when compared to April, online auction attendance remained strong, a sign that prospective buyers were keeping a watchful eye on both prices and stock levels.”
“We also saw a lot of success with our ‘buy now’ online channel throughout the month, which helped us to offer greater efficiency to our vendors in an unpredictable market.”
“Our overall agility remains a clear part of our 2019 CV strategy. Once we have a reserve price our dedicated team continue to add true value by offering CV stock in different and unique sale channels to maximise performance and buyer audiences.”
Davock added: “With higher stock levels and a reduction in demand, damaged and higher-mileage stock proved the biggest challenge to our overall conversion rate measures and we would certainly recommend that our vendors reflect on their pricing strategies to reduce days to sell, and continue to maximise buyer appetite, loyalty and overall demand.
“As we move into June, and out of the bank holiday season, we expect to see the market return to a more predictable pattern, with improved appetite to buy in both the retail and wholesale sector,” he finished.