Record-breaking first half for LCVs at Cox Automotive

The first half of the year has seen unprecedented activity for used light commercial vehicles (LCVs) driven by strong demand and ongoing de-fleet initiatives, reports Cox Automotive.

Between January and June, Cox Automotive’s Manheim Auction Services and Manheim Vehicle Services processed a record 50,267 LCVs, marking a 24% year-on-year increase and the highest volume ever recorded by the company.

Matthew Davock, director of Manheim Commercial Vehicles at Cox Automotive, commented: “The surge in LCVs entering the wholesale market during Q1 continued into Q2, as owner-operators, leasing companies, and rental agencies replaced aging fleet assets. We processed 9,562 more vans in the first half of this year compared to the same period last year, reflecting a strong push to refresh fleets after pandemic-related production delays.”

Davock added: “Exceeding 50,000 units by mid-year is a remarkable achievement. The sustained buyer interest in these vehicles, despite them being outside the typical buyer’s ideal criteria, underscores the high demand.”

In Q2, the average age of LCVs in the Manheim network remained at 64 months, with average mileage at 80,785—down 1,270 miles from Q1. Although average selling prices decreased to £8,164 from £8,763 in Q1, the time to sell dropped by two days, and 70% of vehicles sold on the first attempt. Manheim saw a 32% increase in buyers and a 10% rise in the number of vendors compared to Q1.

Davock noted: “While high volumes and strong demand are evident, buyers are cautious about the prices they’re willing to pay. There’s a noticeable gap between current guide values and retail realities, likely influenced by the typical summer slowdown. However, with 70% of LCVs selling first time in Q2 and increased buyer activity, our strategy of setting realistic reserves is proving successful. Vendors are benefiting from quicker sales and healthier margins.”

Looking ahead, Davock anticipates similar trends for the remainder of the year. “We expect seasonal patterns to continue, but with a slight reduction in June registration figures and manufacturers adjusting to the ZEV mandate, used LCV prices are expected to remain stable as new supply tightens. While some buyers have concerns about the condition of high-mileage units, the new NAMA grading scheme for LCVs is providing greater confidence in their purchasing decisions.”