Cox Automotive is reporting its best year yet for HGV sales at its subsidiary Manheim Auction Services. The company has seen over £25m of assets sold during 2022 with used truck values climbing to their highest ever point in the year, rising by £6,609.
The third quarter was the most succesful quarter, with £7m worth of stock sold on behalf of 88 separate vendors, to 206 different global buyers, illustrating a 28% year-on-year increase, according to Cox Automotive. During the period Euro 6 trucks increased in value to £20,697 on average, demonstrating a year-on-year growth of 18% or £3,068, with an average age of 66 months and 58% of the volume sold.
Meanwhile Euro 5 and older trucks rose to £7,159 on average, demonstrating a year-on-year growth of 34% or £1,805 with an average age of 296 months and 42% of the volume sold. In addition the number of days it took to sell HGVs dropped below 10 days during the period, whilst the first-time conversion rate topped 83%.
The company attributed some of the boost in sales to its new HGV hub locations and a sales programme, which has reduced de-fleet transport miles and CO2 movement costs, resulting in an average saving of £488 per truck. The company has ten HGV auction locations across the UK.
“The seasonality factors that normally dominate Q3 didn’t come to fruition this year. Buyers were missing on holidays and prices did soften a little, but it was such a brief period we didn’t feel the full effect. The general shortage of quality used HGV units, due mainly to the ongoing problems with supply of new trucks, has ensured wholesale demand has remained strong,” said Chris Mynott, Manheim Auction Services national HGV manager.
The auction business saw an average of between 400 – 500 buyers from across the globe joining events online and in person, with the company reporting “frenzied” bidding activity.
Cox Automotive is predicting demand and sale prices will continue their upward trajectory during the festive season, particularly for sought-after Euro 6 units, whilst older Euro 5 trucks will also continue to sell well because of their low prices.