By Alex Wright, group commercial manager, Manheim Auctions

'WITH a hot spell in the weather, self-employed buyers of commercial vehicles are more likely to be on their way to the beach than the auction hall. The majority of buyers who frequent commercial vehicle auctions have a definite maximum price they will pay for a vehicle. This price is determined by buyers themselves and what they are willing to pay for a vehicle and the state of the end retail market.

At this time of the year, pricing ceilings will tend to kick in hard and buyers' maximums fall.

This is due to a number of reasons:
firstly, the summer months see the highest levels of depreciation. Seasoned buyers know this is the case and are out to buy in the right price bracket for them. Buyers will be on the look-out for vehicles that will not depreciate in the future, specialist vehicles or those rare in the marketplace. Examples of vehicles in demand at this time of year include, pick-ups, 4x4 pick-ups and dropside long wheelbase vehicles. Run-of-the-mill vans and car-derived vehicles are at the bottom of the 'most-wanted' list during June, July and August.

This year buyers' maximum prices have been lower than in previous years. Manheim Auctions Colchester has seen 'V' plate Movanos with 70,000 miles on the clock selling for £4,500 and a '51 plate vehicle with 30,000 miles on the clock selling for only £1,000 more, highlighting that margins between 'V' and '51 plates are much smaller at this time of the year.

The car-derived van sector is also seeing prices reduce with an average ceiling of £3,000 – this is approximately £500 less than seen in the spring months.

A major reason for this is that the difference in price between new and used vehicles is minimal. With such competitive prices available on new forecourt vehicles and with low finance deals available to main agent dealers, buyers are more inclined to buy brand new. This has led to prices of secondhand vehicles being forced down, ensuring that they are in a different price bracket to their new counterparts.

It is a fact that the market at this time of the year is sporadic and patchy and my advice to vendors is: 'Hold your nerve! We only have a few weeks to go before the end of August when we will see the market pick up. The key is don't distress sell!'