Used van demand fuels another strong quarter for Manheim

Manheim Auction Services has reported another successful quarter for its commercial vehicle division, with overall asset sale values growing by 7% year-on-year, as the UK used van market continues to demonstrate strength.

Demand and buyer confidence remained consistently strong throughout a highly competitive quarter. Average selling prices increased by £1,827 (up 24.7% year-on-year), with vans achieving an average selling price of £9,226. First-time conversion rates reached strong averages at 82.7%. Engagement across both physical auction lanes and digital channels remained high, as retailers competed aggressively for limited used stock to satisfy sustained retail demand.

Stock between Grades 1 and 2 with less than 70,000 miles on the clock were the highest in demand across Manheim’s portfolio, as buyers look for clean, retail-ready, low-mileage vehicles to capitalise on growing used van demand. This was reflected in Grades 1 and 2 vehicles outperforming guide values on average (112.3% and 109.6%, respectively).

These positive results were delivered against the backdrop of a subdued new van market. Registrations remain under pressure, with delayed fleet replacement cycles, fiscal changes impacting pick-ups and a complex economic environment, resulting in growing strain on supply and residual values.

Matthew Davock, Commercial Vehicles Director at Manheim UK, said, “We are seeing challenges in the new market filtering through to the used. On one hand, low new van registrations for the past 12 months are compressing the supply of young, low mileage stock. Meanwhile, the attractive deal structures and discounts on new 26-plated vans are putting pressure on late-plated product values. “The good news for buyers, however, is that signs point towards a busy Q2, as we anticipate a further boost in volumes from fleet, rental and finance providers. While overall supply remains tight, this uplift will provide greater variety and choice for buyers, maintaining competition and momentum as the spring marketplace develops.”

Further, despite ongoing wider supply industry challenges, the quality of stock entering Manheim’s lanes improved year-on-year as de-fleeted van stock  brought younger, lower-mileage assets to the market. The average age of vans reduced by 7.6 months and mileage by 10,555 miles.

Following a strong start to the year, Manheim’s electric van programme also went on to exceed records yet again in March. Volumes of electric stock increased by 97% year-on-year and over 70% sold first time, a positive signal from the market.

Davock continues, “It’s been a really encouraging start to the year. We’re seeing strong confidence from buyers, improving stock quality coming through the lanes and excellent outcomes for our growing customer base. Despite deeper market challenges, the used van sector continues to prove its resilience, and it’s great to see such positive momentum carrying into Q2.”