Cox Automotive has reported a significant rise in the sales of used light commercial vehicles (LCVs) during the first half (H1) of 2024, marking a record-breaking period for the company’s auction and vehicle services operations.
Between January and June, a total of 50,267 LCVs were handled by Manheim Auction Services and Manheim Vehicle Services.
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Manheim, a vehicle auction and remarketing services company, is part of Cox Automotive.
This figure represents a 24% increase compared to the same period in the previous year and is the highest volume Cox Automotive has ever reported.
Matthew Davock, director of Manheim Commercial Vehicles at Cox Automotive, said: “The flood of LCV product into the wholesale market seen during Q1 persisted throughout Q2 as many owner-operator, leasing and rental players continued to replace their ageing fleet assets.
“Overall, we processed 9,562 more vans in H1 than in the same period last year, a remarkable increase and a clear indicator of how desperate operators have been to refresh their fleets following the post-pandemic production shortages.
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By GlobalData“To exceed 50,000 units by the halfway stage of the year is phenomenal and buyers’ appetite for these vehicles has shown few signs of abating despite their profile being outside of the typical buyers’ ideal criteria.”
The average age of LCVs offered in the Manheim network during the second quarter remained steady at 64 months.
Meanwhile, the average mileage showed a promising decrease to 80,785 miles, which is 1,270 miles less than the average recorded in the first quarter.
Although the average selling prices for LCVs saw a slight decline in the second quarter when compared to the first (£8,164 versus £8,763), the time taken to sell a vehicle decreased by two days.
Nearly, 70% of vehicles were sold on their first auction appearance, the company said.
During this quarter, Manheim noted an increase in buyer engagement, with 4,233 buyers participating, a 32% rise from the first quarter.
Additionally, there was a 10% increase in the number of vendors offering their stock for sale.
Davock added: “Despite the high volumes and evident demand, buyers are showing a degree of prudence in what they’re prepared to pay for stock.
“Average selling prices show an imbalance between current guide values and retail reality, with dealers buying during this period also no doubt factoring in the usual seasonal summer slowdown.
“Yet with seven in every ten LCVs selling first time in Q2 and our auction lanes and digital channels handling considerably more buyers, the policy of setting sensible reserves that we’ve encouraged vendors to adopt is paying off. There’s still a healthy margin in these vans and vendors are happy to see them contributing to the bottom line sooner rather than later.
“Looking towards the rest of this year, I think we’ll see a similar pattern to the one established during the first half. We expect the usual seasonal trends to play out, but with a slight volume reduction reported in the June registration figures and manufacturers navigating the ZEV mandate, we expect used LCV prices to remain firm as new supply eases.
“The condition of these high-mileage units continues to be a bone of contention for some buyers but with the new NAMA grading scheme for LCVs now in place on all our vehicles, they can be more confident in their decision-making.”
