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Used LCV market puts in strong performance in July, says Manheim

LCV sales at Manheim saw increases in volume and first-time conversion rates in July while values stayed firm.

The data shows LCV volumes at Manheim were up 8% year-on-year (YoY) in July, with higher numbers of both daily rental and national fleet and leasing vehicles available at auction.

Stock mix remained consistent with recent months, and average age and mileage held relatively steady MoM.

A total of 77% of LCVs offered by Manheim in July were sold at the first time of asking, up 3.2% MoM, and Manheim also recorded a slight improvement in performance against guide price (up 0.7%).

The firm attributed the performance to good levels of buyer demand and stock availability.

Matthew Davock, director of commercial vehicles at Manheim, said: “After an unpredictable June, the market picked up in July, and we saw increased buyer demand across our online and physical auctions.

“That said, buyers were still fighting hard for the cleanest and most desirable stock, and mileage played a major part in buyers’ appetite to purchase.

“Vehicles with excessive damage and higher extended mileage proved the biggest challenge, affecting the overall first-time conversion figure if not priced correctly.

“In the 4×4 pick-up sector a slight adjustment to guide pricing helped to improve auction conversion rates, but overall condition and specification were key, and vehicles with rear-tops fitted proved significantly more popular with buyers.”

Manheim also saw its online auction channels continue to grow in popularity during July, with 42% of all commercial stock sold to online buyers; highlighting continued growth in the use of Simulcast, Manheim’s online bidding tool, as well as a record number of online-only sales. In July, 11% of LCVs were sold online before ever reaching a physical auction.

Davock concluded: “While market conditions improved in July, there is still some lingering uncertainty across the used LCV sector.

“With the holiday season in full swing, August looks set to be a steadier month with a slightly lower volume of de-fleet vehicles. This will give the sector an opportunity to gear up ready for what I feel will be a busy LCV auction period in September and October.”

Written by Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.

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