Many of those involved in the van auction sector have reported a busy summer of activity with attractive used prices and increased activity in the general economy encouraging buyers.
Some auctioneers have also noted that the rising number of light commercial vehicles built during the pandemic now entering the used marketplace is having an effect on demand and prices.
BCA said the volume of LCVs it sold during July 2024 reached the highest point on record, as the firm increased its sales programme to offer an even greater choice of stock to customers.
According to BCA, while LCV pricing remains volatile, buyer engagement remains positive and total buyer numbers have risen substantially since the start of the year.
In addition, average values have been under pressure since the second quarter of the calendar year, with a large supply of standard model vans creating significant market pressure.
Stuart Pearson, BCA COO UK, said many of these vehicles remain a hangover from the pandemic, as manufacturers were forced into producing base specification models due to parts supply bottlenecks and orders were rushed through to meet the rising demand from the contract hire and rental markets.
He added: “The LCV market has been experiencing a fairly significant pricing realignment over the last few months, and there’s likely still greater movements to come.
“Whilst there isn’t any shortage of buyer interest, the sellers that are taking a very pragmatic approach to investing in the right level of preparation, along with valuing vehicles realistically, are achieving the best results.
“With many base spec vehicles in the system, buyers will inevitably focus their attention on those that can be turned the fastest and the delta between the best and worst condition is likely to increase further.”
Pearson said that BCA continues to work very closely with its customers to ensure that they are presenting them with live market pricing to support their decision making, because the reality is that by the mid-point of the month, the value of an average LCV can potentially change significantly from the start.
He said: “While this may seem like challenging news, demand for LCV stock remains strong and buyer engagement has been at record levels at BCA this year.
“The guide price move into August certainly injected some realism into the market, but currently there’s still the expectation of further moves which should bring sellers and buyers closer together in their expectations.”
Meanwhile, Shoreham Vehicle Auctions (SVA) has observed that prices realigned to its pre-Covid levels during late July and early August, recording its most successful period of LCV sales in 2024.
SVA reported conversion rates of 90% plus as dealers took advantage of lower prices, with some buying vehicles for the first time for many months.
This compares with conversion rates which were typically as low as 50 to 60% earlier in 2024.
Strong demand and sales have bucked the annual summer trend where demand for used LCVs traditionally slows down during July and August, while prices have even risen on certain models as buyers return to the market in their numbers.
SVA said that SMEs – who are the main buyer of used LCVs – are currently looking to take advantage of the drop in prices, the recent fall in interest rates and a new government promising investment in housebuilding.
Alex Wright, Managing Director at SVA, said: “The market is unprecedented in that it normally slows down during the summer.
“Talking to more than 100 dealers over the past few weeks, they have returned to buying vehicles for stock and to meet demand from a growing number of SMEs looking to take advantage of the fall in prices.
“The used LCV market is as buoyant as it was pre-Covid with vehicles much more affordable.
“We anticipate higher conversion rates will continue now for the rest of the year as there are many aging vans in the market where replacement cycles have been extended waiting to be replaced. Dealers are also confident that prices are not going to drop any further.”
Manheim has reported that in July, buyers regained some confidence that was missing in May and June, with many stating that retail activity has also improved.
July was the company’s strongest month for sold volume since 2019, and it predicts that the market will remain consistent and stable.
First-time conversions improved by more than 5% throughout July compared with June, and the number of days to sell also reduced by two days, demonstrating the positivity in the marketplace.
LCV action specialist Stuart Peak said: “There is currently more stock in the CV world than anything we’ve seen for the past five years.
“As a result, we have seen prices soften over the course of 2024, but we must not forget that average selling prices are still way ahead of where they were five years ago.”
Regarding the state of the market for used electric vans, Paul Hill, spokesperson for the National Association of Motor Auctions (NAMA) said there is still a way to go before it will gain significant traction.
Speaking about the LCV auctions market in general, he added: “The LCV market is steady but is seeing a bit of the same scenery as previous months, with prices still trending downward.
“Vehicles under three years old with low mileage are performing well, but as soon as the mileage increases, they present more challenges.
“July saw one of the highest sales volumes on record.”
