Press release

Huge demand for commercial vehicles remains as used prices see record growth

According to the latest data from Auto Trader, the UK’s largest marketplace for new and used vehicles, demand for commercial vehicles (CV) has been largely unaffected by the latest lockdown in England and the broader restrictions imposed across the UK.

CV specific visits to Auto Trader’s marketplace fell 15%[1] in the three days between the Prime Minister’s announcement on the 31st October and the start of the new restrictions, however it quickly returned to growth during the first weekend of the lockdown, increasing 38% on the same period last year.

Following the reopening of forecourts in June, CVs have recorded a period of exceptional levels of demand, bouncing back far quicker than other markets over the summer. In August, visits to Auto Trader’s vans platform were up 52% year-on-year (YoY), whilst there were a record 17.2 million CV advert views, which represents an additional six million compared to August 2019

CV performance continued into October, and despite the government’s introduction of the three-tiered coronavirus system and the 17-day national ‘firebreak’ in Wales, buyer behaviour has remained unphased, with visits up 48% YoY and advert views per stock item up 106% YoY. This increase in traffic resulted in a 51% YoY increase in the number of leads being sent to CV retailers in October, with double the email, text and chat leads per advert compared to pre-lockdown levels.

The sustained levels of demand, coupled with ongoing supply constraints in the market, has had a significant impact on used CV prices. In October the average price of a used van on Auto Trader was £15,482; 20% higher than the average £12,900 sticker price in October 2019. It marks 10 months of consecutive price growth for used CVs.

Despite the increase in prices, and further highlighting the strong levels of demand in the market, CVs are spending significantly less time on retailers’ forecourts, with the average days to sell reducing by 37% YoY to just 26 days.

Commenting on the findings, Leanne Thomson, Auto Trader’s Van Lead, said: “Despite the tighter restrictions across the UK, our data points to a very buoyant CV market. Not only has the huge level of demand that we’ve been tracking over the summer remained, but our latest consumer research indicates that over 50% of buyers are open to using click & collect and home delivery services. So, whilst forecourts have had to shut temporarily in England, this growing propensity for online retail means retailers are able to continue selling in a meaningful way; and with prices continuing their upward trajectory, with a healthy margin too.”

Earlier this year Auto Trader introduced new features enabling buyers to research and take delivery of vehicles without the need to visits a showroom. This was further enhanced with the launch of its Buy Online hub last week, which enables buyers to search directly for the hundreds of thousands of vehicles available via click & collect and / or home delivery on the Auto Trader marketplace. There are currently circa 4,500 (4808) retailers offering click and collect services, and circa 5,500 on home delivery.

Our CEO Nathan Coe will be live on next week's webinar to answer your questions. You can submit your questions to him in the comments and when you register to join the webinar live at https://t.co/rdtNiD8APu https://t.co/d99VfhPofQ
Last week saw the 89th week of consecutive used car price growth, with prices rising 28.6% year-on-year. With used car prices continuing to rise it’s crucial to keep repricing your stock inline with the market to ensure you aren’t leaving profit on the table. https://t.co/MRHJVoNvzs
2021 was a record year for new electric vehicles on our marketplace which saw a record number of advert views in 2021, with 1 in 5 new car advert views now for an electric vehicle. What EVs do you think we'll see drawing the most attention in 2022? https://t.co/niblnnJaPl
Looking to evolve your business by breaking free of outdated data feeds and enabling your customers to have a real-time view of your digital forecourt? Then check out our ‘Essentials to connected retailing’ masterclass now 👉 https://t.co/VggO5GDvFa https://t.co/hRUW9aXDTf
We’re still faced with an element of uncertainty when it comes to the pandemic which means you need to be prepared for any eventuality. So in this week’s tip of the week, @AndrewKorpela shares some top tips on how to make sure you're prepared for whatever is thrown at you next. https://t.co/9cKawLT6Q9
In his latest update, our CEO Nathan Coe shares our latest market insights, including an analysis of consumer demand and pricing, and reveals our plans for 2022. https://t.co/oyxwpJf2U1
With record numbers of new electric vehicle sales and, as we reveal in our latest blog, an electric vehicle being the fastest selling of any used vehicle in 2021, last year really was a victory for voltage 👇 https://t.co/j4Al3nByBL
In our latest Monthly Market Intelligence Report, we analyse the 3 key trends that came to define the automotive industry in 2021, record demand, the growth in used car prices and the acceleration of EV adoption 👉https://t.co/tVW6vpQjxm Will these trends continue through 2022? https://t.co/rITl15odBm
A quick summary of what we have covered in today's webinar from @ClarkRjoclark. https://t.co/QFgNQYhCR8
Prices then are still strong, but we are still seeing under-priced stock on our marketplace which means there is profit being left on the table. It's key then to monitor the live market prices and re-price to the live market value to avoid missing out on profit. https://t.co/3jGvyFVPIn

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Auto Trader Limited
Registered in England and Wales (Company number: 03909628)

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