Record number of used vans sold by Cox Automotive

Thanks to sustained demand and ongoing fleet reductions, a record number of used light commercial vehicles (LCVs) have been sold through Cox Automotive’s auction and vehicle maintenance operations.

Between January and June, 50,267 light commercial vehicles were processed by Manheim Auction Services and Manheim Vehicle Services.

That was a 24% year-on-year increase and the highest number ever recorded by the automotive services company.

Matthew Davock, Managing Director of Manheim Commercial Vehicles at Cox Automotive, said: “The flood of LCV products into the wholesale market that we saw in the first quarter continued into the second quarter as many owner-operators, leasing and rental companies continued to replace their ageing fleet assets.

“In total, we processed 9,562 more vans in the first half of the year than in the same period last year. This is a remarkable increase and a clear indication of how desperate operators are to renew their fleets following the production shortages following the pandemic.”

He added: “It is phenomenal to have sold over 50,000 units halfway through the year and buyer demand for these vehicles shows little sign of abating, despite their profile falling outside the ideal criteria of the typical buyer.”

The average age of light commercial vehicles in the Manheim network was again 64 months in the second quarter and the average mileage was 80,785, an encouraging decrease of 1,270 miles compared to the first quarter.

Despite average selling prices falling in Q2 compared to Q1 (£8,164 vs £8,763), days to sale fell by two days with 70% sold in one go.

Manheim recorded 4,233 buyers during the quarter, up 32% from the first quarter, and a 10% increase in the number of inventory sellers.

“Despite the high volumes and clear demand, buyers are showing a degree of caution in what they are willing to pay for inventory,” Davock continued.

“Average selling prices show a mismatch between current guidance and retail reality, with traders buying during this period no doubt also taking into account the usual seasonal summer slowdown.

“But with seven in 10 light commercial vehicles sold for the first time in the second quarter and our auction and digital channels able to handle significantly more buyers, the policy of setting reasonable reserves that we have encouraged sellers to adopt is paying off.

“There is still a healthy margin in these vans and suppliers are happy that they will soon be contributing to profits.”

He concluded: “As we look at the rest of this year, I think we will see a similar pattern to the first half.

“We expect the usual seasonal trends to emerge, but with a slight volume decline reported in the June registration figures and manufacturers navigating the ZEV mandate, we expect used LCV prices to remain firm as new supply diminishes.

“The condition of these high-mileage vehicles remains a source of contention for some buyers, but with the new NAMA LCV classification scheme now applying to all our vehicles, they can have greater confidence in their decision-making.”