Focus on | Remarketing A year of two halves
In our annual review of the state of the LCV remarketing arena, Tim Cattlin talks to those on the front line and looks at what’s in store for 2025
W
ith various factors at play, including a change of government, a cost of
living crisis, not to mention pressure on manufacturers to sell more electric vans, 2024 could be forgiven for being a testing time for those involved in the used van industry. “At the beginning of 2024, I bet no one
thought that prices would drop by 25.1% in the year,” said Dionne Hanlon, senior editor, commercial vehicles at valuation data providers cap-hpi. “To say that 2024 has been a difficult year for LCVs is an understatement. Values started to erode dramatically from July, causing very significant movements.” Broadly agreeing, Andy Picton, specialist
residual value analyst and team leader at Glass’s said “Demand for used LCVs has increased during the year with supply and demand now well balanced, but used auction prices have fallen 20% on average over the year although are still over 15% higher than pre-pandemic 2019.” Citing factors that have been present to depress the market, Picton added, “Tere’s been an oversupply of ‘samey’ stock to the used market. An abundance of white vehicles, and high mileage, damaged vans.”
56 Observing a more positive sentiment
from members, Phillip Nothard, chair of the Vehicle Remarketing Association said, “Generally, 2024 has been a pretty buoyant year for used van sales, according to VRA members. Tere are some weaker points in the market around specific models and sectors but overall, we’ve seen consistently good volumes and conversion rates, while price falls following the post-pandemic boom have stabilised, to a degree.” Te auction industry provides possibly the most accurate indicator of supply, demand, trends and buyer sentiment, handling thousands of disposals each year to the trade. Managing director of Shoreham Vehicle Auctions, Alex Wright, has observed a year of two halves. “Te used LCV market experienced a tough ride in 2024 until August – a month when traditionally the sector slows right down – it woke up and it has been buoyant ever since. Te 2024 market ended more positive than at any time than I have seen in 35 years of working in the industry with vendors selling and dealers buying right up to Christmas.” Tis volatility was also reflected at G3 Vehicle Auctions, as Sam Magee, LCV auctioneer highlights: “We saw a very different market trend throughout 2024, with some huge price adjustments
from March through to September. We challenged the market and worked with the vendors to find a home for stock where desirability had plummeted. Te biggest challenge was the Sprinter L2/ H2 stock which we saw an abundance of from all suppliers’.
Te theme of 2024 being a testing year was
ever present for Motor Auction Group, as Geoff Flood, head of LCV said: “2024 was an extremely difficult year for the LCV market in general, the building trade is on its back side with high interest rates and the general cost of living making the retail sector quiet. Tis was reflected in the auction halls with conversions being at the lowest that I can remember in recent years.” Highlighting the role that prime retail stock had in boosting performance, Flood added: “Te real winners were the vendors who invested in metallic paint, top of the range models, these always seem to ignore the general market and make their money. If in good condition, they were doing Cap Clean and beyond.” Manheim Auction Services, one of the largest remarketing companies also saw a challenging year as Matthew Davock, director of commercial vehicles explained: “Overall, in 2024 the used van industry witnessed many obstacles and one of them
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