New Vehicle manufacturing and registration fluctuations affect the Used market
New car registrations for October came in at approximately 145,000, roughly equivalent to last year, and seen as something of a success given the economic conditions. BEV and PHEV registrations also rose quite dramatically year on year with increases of 24% and 27% respectively.
The same cannot be said for the new LCV vehicle market which is down 15% for October year on year, and HGV registrations which sank by 14.5% in Q3. Undoubtedly the push for BEV registrations in the LCV world has meant that manufacturers are forcing a percentage of volume deals to at least attempt to get close to ZEV Mandate targets, so for some Fleet and Rental buyers this has meant switching off supply rather than take vehicles which they don’t have customers for.
This drop in registration volumes continues to heavily influence the availability of used stock in the market as replacement cycles experience more hiccups than would normally be the case. So, even though we are in what we used to see as the quiet time of the year, the demand for used LCVs remains strong, creating a delicate balance between supply and demand.
Another stark change in our UK market is the big reduction in home grown LCVs, or more specifically those built in the UK. The SMMT report a 58% drop in LCV production over the last 12 months. This is due to a number of factors, but primarily the closure of Stellantis’s Luton plant, along with the challenges of retooling and preparing for increased BEV production at Ellesmere Port. Production and registrations should increase again next year, but with no rush of orders for BEV LCVs and a stuttering economic outlook all bets are off.
Used LCV Market
Last month, most auction houses reported high conversion rates along with notable increases in average sale prices. Although Trade sales volumes rose in September, as typically expected after the release of the new plate, overall sales remain 23% lower than the same period last year.
This is great news for auction prices, and the Trade guide values which we all use. These remain stable and are even increasing in some areas. Useable later plate chassis derived stock of all descriptions are a great example of this and continue to outperform book values by some distance in most cases. These vehicles just aren’t available on tap from any reliable sources.
There is also a distinct lack of vehicle churn in the large van sector within the big Rental companies that often dictate the used market prices and supply.
This is not only due to the slump in registrations but also to preparation for ‘peak demand’ running up to the Christmas period when everyone involved in getting goods to our door want extra vehicles on fleet.
All in all the market is still very strong across the board which is something we are very grateful for at this time of year.
Used Car Market
While the aforementioned new car sales are on a par with previous years’ performance in terms of registrations, used cars are a different matter. While volumes in the market are consistent with no obvious oversupply, interest in anything but the most desirable stock is waning by the day.
Even some of the higher specification prestige brand cars that we often see and sell relatively easily have become difficult to get a healthy bid on. Anything lacking exemplary service history, or with damage requiring paint repairs or trim replacements is either subject to harsh bids or just getting passed over with a lack of any competition from rival bidders.
This shouldn’t be a great surprise at this time of year when Retail demand is at its lowest point in the calendar, but with dealers reporting ever decreasing profit margins due to more and more internet driven ‘best value’ searched sales creating a race to the bottom, plus increased operating costs across the board, times are undoubtedly tough for this part of the automotive industry landscape.
Trucks and Trailers
Stability remains the name of the game in the truck and trailer sales this month, with overall stock levels at auction well down on previous months. This is good news for pricing of course, with most sectors seeing improved prices.
An interesting fact this month which is by no means different to any other month, over half of the auction truck entries were over 8 years old. This of course now includes some early Euro 6 stock too. Certainly any ‘normal’ specification trucks that are older than 9 years and Euro 5 or earlier are now really selling for just parts and scrap value. The export markets remain keen on older trucks but, not for standard spec boxes, dropsides etc. Larger trucks such as this 6×4 Hookloader are still in demand, even at 16 years of age and are likely to be exported.
The predominance of older trucks in the markets explains why any newer stock, of less than 5 years old is in great demand currently with premium prices being paid. This applies across the board, with even the humble 7.5-ton boxes making healthy prices.
This strong pricing includes these 2 Econic 6×2 RCV’s, which because of their Euro 6 credentials provide the trade buyer with a useful retail proposition, with service life left in them. As such they made £14000 each at market this month and sold to an eager audience. Interestingly, had they been 2 years older and Euro 5, they would have sold for parting out and scrap at, no more than £5000 each.
DAF LF 12–18-ton Fridge Boxes remain about at auction in volumes, which does not help values. They are being bought, but only if reserve pricing is sensible. In fact, it is noteworthy that DAF chassis across most weight and body derivatives are suffering from volumes of similar stock, with pricing taking a dive as a consequence.
Trailer stock has remained largely unchanged this month, with quite a few fresh entries of Curtainside and Box examples. They are being bought though as demand appears to be quite strong and, of course anything different like Skeletals or low loaders are proving very popular indeed.
In general terms, the truck and trailer markets are enjoying some significant stability, unlike 12 months ago. It is to be hoped this continues, however any large spike in volume after Christmas could see prices dropping.
Plant and Equipment
As with the truck markets, sales of plant and equipment has again remained very buoyant this month, although a note of caution is that reserve pricing needs to be sensible to attract any bids.
With all plant sales now online only and with little vendor representation at the auction centre on sale day, it is down to the auctioneers to judge where to start the bidding. With artificially high reserves being set by absent vendors, the temptation by the auctioneer is to start the bidding high, to get somewhere close to reserve.
This usually results in no bids at all, with the asset having to sit until the next sale. Because we always attend sales, whether they are online or not, we can manage the vendor expectations accordingly and at least present a bid on which to work.
But generally, there are no surprises in the markets this month, although the appearance of Chinese equipment is becoming more frequent. These assets do sell but, pricing is significantly behind their Western Europe produced competitors, on a like for like basis.
From the Rostrum
As noted in the Plant and Equipment section this month, attending sales remains vitally important to be able to secure any bids on stock. Often the mere attendance on the rostrum at a physical sale is enough to encourage the buyers to bid competitively on the stock.
Our Auction Managers remain very active all over the country, to ensure bids are secured on all stock regardless of their condition. Our attention has also now turned to agreeing the 2026 sales programme with all auction centres, to avoid clashes in dates and to secure prime time slots.
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