Commercial Vehicle Prices Surge
As we’ve shared before, following the reopening of showrooms across the UK, we’ve seen demand for commercial vehicles (CV) soar, with the number of unique users to Auto Trader Vans increasing 40% on June 2019, and 79% on pre-COVID-19[1] levels.
Based on weekly pricing observations of circa 186,000 CVs in the market, it’s evident the increase in demand has influenced average prices. Whilst forecourts were closed, average prices remained stable, and in fact increased 2% between the start of the lockdown period to mid-May, growing from £13,128 on 22nd March, to £13,402 on 20th May. However, as anticipation of showrooms reopening grew, prices began to surge. On 1st June the average sticker price of a used CV increased to £13,710 and has continued to grow, averaging £14,404 on 6th July. It marks a 10% increase since pre-lockdown.
Commenting on the findings, Karolina Edwards-Smajda, director of commercial products, said: “With over 64 million total visits to Auto Trader last month, we have seen extremely strong consumer demand since retailers have been able to reopen their showrooms. This latest data clearly shows that it hasn’t been limited to cars and there is a huge opportunity in the CV market too.
“It’s reassuring to see retailers haven’t been tempted to drop their prices in order to entice buyers on to their digital and physical forecourts; with demand so high, there is absolutely no reason to do so. And whilst it’s hard to predict how long it will last, retailers should continue to be confident in their pricing and use accurate and up to the minute data, tools and insight to back up their pricing decisions.”
The launch of our commercial vehicle retail valuations earlier this year couldn’t have been timelier. By understanding what’s happening with prices in the live market, retailers can ensure they’re not paying too much for a van at trade and then having to price it beyond what any buyer is willing to pay.
The increased demand has had a significant impact on the speed of sale. As of the last week of June, the average number of days to sell a commercial vehicle has fallen -43% since the beginning of the lockdown period,[2].
In a positive sign of intention to buy, we have continued to see a significant increase in the level of engagement with retailers whilst on site. The average number of weekly leads (calls, emails chats, texts) being sent to CV retailers since lockdown has grown by 23% and the number of leads to van dealers in June were more than double compared with February 2020.
[1] w/c 29th June versus w/c 16th March 2020
[2] w/c 29th June versus w/c 23rd March 2020