Record number of used vans sold by Cox Automotive

A record number of used light commercial vehicles (LCVs) passed through Cox Automotive’s auction and vehicle services operations thanks to sustained demand and continued de-fleet activity.

Some 50,267 LCVs were processed by Manheim Auction Services and Manheim Vehicle Services, between January and June.

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

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.”

He added: “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 seen in the Manheim network during Q2 was again 64 months, and the average mileage was recorded at 80,785, an encouraging reduction of 1,270 miles on that seen in Q1.

Despite average selling prices easing in Q2 in comparison with Q1 (£8,164 vs £8,763), days to sell reduced by two days and 70% sold first time.

Manheim recorded 4,233 buyers during the quarter, a 32% increase on Q1, and a 10% increase in the number of vendors selling stock.

“Despite the high volumes and evident demand, buyers are showing a degree of prudence in what they’re prepared to pay for stock,” continued Davock.

“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.”

He concluded: “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.”