glass’s monthly commercial vehicle market report€¦ · glass's monthly cv market report...
TRANSCRIPT
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Glass’s Monthly Commercial Vehicle Market ReportMay 2019
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Contents
Glass's Monthly CV Market Report – May 2019 2
Foreword 3
New LCV Market
Overview 5
Used LCV Market
Overview 6
Used HCV Market
Overview 7
Used Van Hero May 8
Residual Values
Measuring our accuracy 9
New Iveco Daily Review 10
And finally… 11
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Foreword: Long Term Challenges
From blocking five major London bridges in November 2018, Extinction
Rebellion up scaled their plans and created major disruption in the capital
for a fortnight from 15 April. Participants brought tents to camp out in
Parliament Square and other locations including just outside Glass’s office
on Waterloo Bridge.
Their aim was to increase climate change awareness forcing the
government’s agenda to transform the economy and society to deliver net
zero carbon emissions by 2025.
Climate change is a long-term challenge for the motor industry. Developing
technologies to reduce the environmental impact of vehicles is not an
overnight process. Change will take time and the economy may have to
adapt to new legislation to reach the air quality goals.
The UK commercial vehicle parc is over 4.9 million. The majority is diesel
powered. Over 34.5% of these vehicles are over ten years old. Replacing
these older vehicles with the worst emissions has to be a priority.
The latest Euro 6 diesels offer a compromise between price, payload and
emissions for many businesses. There are full electric, hybrid and gas
technologies on the market, but customer acceptance is hampered by
limited vehicle availability, high costs, mileage range and limited
infrastructure.
With the arrival of the Ultra Low Emission Zone (ULEZ), London’s mayor
has launched a scrappage scheme to help tackle London's air quality
issues. The scheme will support micro businesses and charities.
This scheme encourages businesses and charities meeting the eligibility
criteria to apply for one of three funds, highlighted on the following page.
Andy Picton, Chief Commercial Vehicle Editor, Glass’s
Glass's Monthly CV Market Report – May 2019
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Long Term Challenges
Option 1:
Scrappage for frequent users of the Congestion Charging Zone (CCZ)
(£3,500)
The vehicle being scrapped must:
• Have been driven within the CCZ at least 52 times during
the 6 months before 22 February 2019 - this will be checked
against existing transactions in each applicant’s London
Road User Charging account
• Be a pre-Euro 6 model light van (or charity-owned minibus)
that does not meet the ULEZ standards
Option 2:
Scrappage and purchase/lease of Euro 6 replacement (£3,500)
The vehicle being scrapped must be:
• A pre-Euro 6 model light van (or charity-owned minibus)
that does not meet the ULEZ standards
• Replaced (by purchase or lease) with a Euro 6 light van or
Euro 6 minibus (for charities only)
• The micro business or charity must be registered at a
Greater London address.
Option 3:
Scrappage and contribution towards running costs (including insurance)
of an electric vehicle (£6,000)
• The grant payment is made up of £3,500 for scrapping
eligible vehicles plus a £2,500 contribution towards running
costs (including insurance) of a replacement electric
vehicle(s).
The vehicle being scrapped must be:
• A pre-Euro 6 model light van (or charity-owned minibus)
that does not meet the ULEZ standards
• Replaced (by purchase or lease) with an electric light van or
electric minibus (for charities only)
For a micro business or charity NOT registered in Greater London the
vehicle must also:
• Have been driven within the CCZ at least 52 times during
the 6 months before 22 February 2019 - this will be checked
against existing transactions in your London Road User
Charging account
Under Option 3 owners can apply for a refund from ULEZ charges for
the three months after first applying for the scheme.
Glass's Monthly CV Market Report – May 2019 4
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New LCV market overview –April 2019
Demand for new Light Commercial Vehicles (LCV) in April increased 4.7%
versus April 2018 with 24,604 new registrations. Demand for lower
emissions aided by attractive market incentives appears to be driving the
demand as the market returned increases of 8.8% in the under 2.0 tonne
sector and 6.9% in the 2.5-3.5 tonne sector. Offsetting some of these
increases was a 1.4% decline in pickup registrations during April.
This completed a positive first third of 2019, with year to date (YTD)
registrations of new LCVs standing at 127,347, in increase of 8.0% on the
same period in 2018.
Top five LCV registrations
The introduction of the Worldwide Harmonised Light Vehicle Test
Procedure (WLTP) for LCVs in September is creating an interesting
dynamic in the new market. As manufacturers work towards the September
deadline, current Euro 6 deals are multiplying as dealers prepare to clear
older stock in preparation for the roll out of the WLTP compliant versions.
However, with supply constraints a possibility, buyers choosing to wait for
WLTP compliant engines may have to wait longer to secure the newest
vehicles.
5Glass's Monthly CV Market Report – May 2019
Ford Transit Custom 20,116 Ford Transit Custom 3,505 Ford Transit Custom 3,428
Ford Transit 9,150 Ford Transit 1,897 Ford Transit 1,670
M-B sprinter 7,354 M-B Sprinter 1,752 VW Transporter 1,560
VW Transporter 6,765 VW Transporter 1,516 Ford Transit Connect 1,373
Ford Ranger 5,621 Vauxhall Combo 1,036 Citroen Berlingo 1,212
YTD 2019 Apr-19 Apr-18
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Used LCV market overview
Overview
At auction, there is a growing price gap between quality ready to retail vans and tired,
damaged vans. Some vendors report conversion rates as low as 50%, meaning the poorest
stock is difficult to sell. With growing stock availability, auction companies are planning
additional sales across the country to help combat this issue.
Whilst the Ultra-Low Emission Zone (ULEZ) in London raises awareness of Euro 6 product,
buyers are still unwilling to pay the premium prices set by vendors. Currently, most buyers
remain happy trading in Euro 5 stock.
Small Vans - 31% of overall sales
In the small van segment, 75% of all sales in April were over 4 years old. In this age range,
ex-utility examples of Caddy, Combo and Doblo proved good value for money with tidy
examples of Kangoo and previous generation Transit Connect also selling well. Later plate
Fiesta Sport continues to drive strong performance, whilst prices hold steady for high
specification vans with sensible miles. Whereas prices for the Fiesta Van ECOnetic and
base specification Berlingo were a little off the pace.
Medium Vans - 36% of overall sales
As with the small van segment, the best presented and higher specification examples
achieved the strongest prices, especially the Transit Custom and Transporter. Crew vans
are extremely popular and generate good prices for vendors selling versions from
Volkswagen, Ford, Renault and Vauxhall whilst panel van stock with air-conditioning
continues to attract the most attention especially from convertors. Auction buyers keen for
value vans see the Transit 280 SWB as prime stock, along with older examples of Dispatch
and Vivaro with sales of stock over 4 years old accounting for over 60% of sales in this
segment last month.
Large Vans - 19% of overall sales
Poor condition and high miles tend to blight prices in this segment. In good condition, current
generation Transit receives significant attention from auction buyers, with the cleanest
examples of FWD 290 L2H2 and both FWD and RWD 350 L3H2 in demand. Even in the
large van segment, versions in metallic colours drive higher prices with vans in silver and
black sought after. Prices for short and medium wheelbase vans are also holding steady.
Buyer demand continues for dropside and tipper stock of all ages, although buyers of crew
cab variants expect the rear bench seats to be in situ if prices are to be maximised. Rarity at
van auction continues to drive demand, in the large van segment uncommon examples of
curtainsiders or caged tippers attract buyer attention delivering solid prices.
4x4 Pickups - 14% of overall sales
Under 7% of sales in this segment was for less than 2 years old stock.
Stock availability remains high coupled to unrealistic vendor price expectations continue to
result in limited sales success. Over-supply of most models is seeing high specification L200
Barbarian, Navara Tekna, Amarok Highline and Ranger Wildtrak underperform unless fitted
with automatic gearboxes. Vendors attain improved levels of auction conversion with older
examples of Rodeo, Ranger, Hilux and Navara especially those coupled with low miles.
Fiat’s Fullback continues to struggle to gain acceptance. In the used market, Fullback values
are in excess of £2,500 behind the equivalent L200 derivatives. Well-priced Defenders
remain in demand with some vendors seeing the British icon as a licence to print money.
Auction highlights
• Units sold in April: Circa 9,300 (Down 11.6% on March) (Up 0.6% on April 2018)
• Average van price: £6,295 (Down 0.4% on March) (Down 1.7% on April 2018)
• Average mileage: 75,741
• Average age: 66.1 months
• First time conversion rate: 73.3%
• Best-selling model at auction for April: Citroen Berlingo 625 Enterprise L1
6Glass's Monthly CV Market Report – May 2019
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Used HCV market overview
Overview
The heavy truck market made a slow start to 2019. Both new and used sales are
noticeably subdued with a lack of availability and price sensitivity. The market
slowly recovered through March with demand improving for new deals and the best
used stock available.
Buyers in the market for used Euro VI vehicles are actively seeking the best stock
on offer, especially operators working in and around the capital who are seeking
heavier Euro VI vehicles such as curtain siders and box vans with low miles. Ex-
daily rentals entering the used market at 7.5-18t gross vehicle weights (GVW) are
also successfully finding buyers.
Although condition and mileage sensitive, clean and tidy Euro V stock continues to
enjoy a good level of demand. Sensibly priced pre-Euro V stock continues with a
good level of interest. Particular interest are for those in good condition or kitted out
with unusual bodies or additional equipment. Although limited in number, any truck
worthy of export also resulted in a sale.
Although cheaper to purchase, older stock is becoming more difficult to place. With
the number of Clean Air Zones (CAZ) increasing, targeted sales of older stock are
the way forward if operators are to avoid the prohibitive £100 daily CAZ charge.
Rigids
At the lighter end of the market, activity is generally slower, with fewer nice
examples for sale. There are some 7.5t GVW Euro VI box vans and curtain siders
available, but there is a shortage of tippers. The 12-15t market is a little more
buoyant, with a good balance between supply and demand helping to help sales.
Traditionally the 18 tonne segment is the busiest in the used market, with a varied
choice of stock available. Anything in good condition and powered by larger
horsepower engines usually sells well. Run-of-the-mill Euro VI distribution stock can
be price sensitive, especially if low powered.
In the heavy weight 26 tonne and over segment there are similarities to the 18t
GVW market. With more examples to choose from in this sector, stock is slower to
move especially with specific buyer requirements where they want high roof,
sleeper cab variants or those with big cabs and big engines. Typically, the used
buyer in this segment is usually one of the drivers, so demand is always for the best
specification possible.
Multi-wheelers
Tippers are available in numbers, however, mileage and condition critical to sales.
Any damaged examples spend weeks in the workshop before a sale, so most
buyers prefer to spend more to avoid workshop time. Plant and equipment carriers
continue to be in demand as there are few in the marketplace.
Tractor Units
Supply is out of kilter with demand in this segment, with ample wholesale
availability and fully stocked dealers. The over-supply is putting downward pressure
on wholesale prices. Notable here is that Euro V stock continues to sell if priced
correctly whilst the latest model Scania is already on offer on the open market.
7Glass's Monthly CV Market Report – May 2019
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Each month, Glass’s Commercial Vehicle editors hold a meeting to name the
current Used Van Hero in the UK market this is the model the team believe offers
versatility, durability and outstanding value for money.
Andy Picton, Chief Commercial Vehicle Editor: “If you need a robust 4x4 that can
cope with most terrains then look no further than the sturdy Land Rover Defender.
There are still excellent examples going through auction halls across the UK.”
When was it on sale
The Defender launched in 1983 and emotionally, production of this motoring icon
finally ended at Solihull in 2016. The all-new commercial version is under
development, with production pencilled in for late 2020 or early 2021.
Why
If your requirements include robust off road capability with British pedigree, the
Defender is the clear choice. With a huge international following Defender delivers
when other vehicles simply stop. There are numerous 90, 110 and 130 wheelbase
variants available. Accessories make the Defender desirable, with anything from
roof racks to checker plating or snorkel exhausts available through the Land Rover
accessory catalogue. It is the vehicle for farmers and field sport aficionados alike.
The chassis configuration and simple all-wheel drive system make it ideal for off
road use. The body panels cope with rough terrain and are simple to replace. The
height of luxury is the XS model. This comes with air-conditioning and electric
windows as standard. The cargo area ranges between 1,510 and 2,170-litres, with
payloads of up to 1-tonne. On and off road it feels solid and sure-footed.
What’s Good
Residual values are strong for the Defender and especially on the 90 model. The
dashboard is basic but clear and well laid out. This vehicle exudes character and is
straightforward to manoeuvre on the trickiest of surfaces. All round visibility is good
from Land Rovers fabled commanding driving position. Land Rover have an
excellent dealer network, however labour costs can be high leading to expensive
bills. Alternatives are available via specialist repair agents leading to a cost effective
way of keeping your Defender in top condition. Service and repair parts are
relatively inexpensive.
What’s Bad
Given the gruelling terrain some Defenders operate on, check the underside for any
signs of damage. Check for oil leaks and signs of wear or damage to brake hoses
or suspension. A slipping clutch caused by a leaking rear main oil seal is a known
fault. Beware of any warning lights that will point to diesel particulate filter issues.
Taller drivers beware, some Defenders fore and aft seat movement is limited by the
bulkhead. The seat position also makes the cabin seem narrow for larger drivers.
As with all used vehicles, a full service history is great news.
Ideal Buy
Land Rover 90 Defender 2.2TD XS Hard Top - 2015/15 plate with 40,000 miles on
the clock.
Retail £24,725 + VAT and Trade £23,075 + VAT
Used van hero May: Land Rover Defender 90 XS Hard Top –2007 to 2016
8Glass's Monthly CV Market Report – May 2019
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Residual values – measuring our accuracy
9
How accurate are our current Glass Trade values?
Glass’s closely monitors the wholesale auction market and all observations gathered are used to help us to achieve our target of the Glass Trade Value. The
graphs below show Glass’s Trade Accuracy For LCVs Observed in April 2019 versus the average Glass Trade Valuation for April.
The image to the left is a snapshot of our
accuracy reporting dashboard.
Glass’s subscribers get full access to our
accuracy dashboard each month and filters
include:
• vehicle type
• fuel type
• manufacturer
This means subscribers can see just how
accurate we are on what matters most to
them.
Glass's Monthly CV Market Report – May 2019
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The 2019 Iveco Daily builds on the success of the model launched in the UK in 2015. For
2019, the Daily stands out for fuel efficiency with features such as the variable geometry
turbine, low rolling resistance tyres and a start and stop system.
This model year is a refresh of the style with improved interiors, mechanical changes with
active safety and driver assistance systems whilst retaining an extensive engine line up. The
Daily is available as a manual or optional Hi-Matic eight-speed automatic, with a 4x4
drivetrain, and with Gross Vehicle Weights (GVW) up to 7.2-tonnes.
Drivetrains
With the introduction of both light and heavy duty 2.3 litre engine derivatives alongside a 3.0-
litre heavy-duty engine power outputs are available up to 156PS and 470Nm.
The 3.0-litre engine is also available in a compressed natural gas (CNG) version, resulting in
a clean-running and remarkably quiet vehicle.
All internal combustion engine models benefit from the variable geometry turbine, a new 220
amp alternator and bigger oil sump resulting in service intervals extending to 60,000km. With
these product improvements and the longer service intervals, Iveco are suggesting
significant savings available of up to 10% on maintenance costs.
The new Daily is the first van to achieve the Euro 6d temp emission standards. Iveco
promises improvements to fuel efficiency with the engine improvements delivering savings
up to 8% compared to the previous Euro 5 models thanks to the advanced driveline
technologies.
Iveco has also taken the decision to streamline its Daily electric offering to just the 80kW
battery. Believed to be the perfect balance between range and payload, it will be capable of
up to 80 miles on a single charge and will be available as both a van and a chassis.
Interior and exterior changes
On a path towards autonomy, the New Daily introduces a raft of Advanced Driver Assistance
Systems (ADAS) to aid driver, passenger and other road user safety. The objective is to
mitigate the risk of accidents involving the Daily. The safety systems include:
• Automatic Emergency Braking System (AEBS) and City Brake PRO
• Queue Assist for use in heavy traffic
• Adaptive Cruise Control
• Lane Keeping Assist
• Crosswind Assist
• Hill Descent Control
• Traction Plus
• Electric park brake
The new interior features a smaller steering wheel with reach and rake adjustment and a
clear new 7” infotainment screen compatible with any smartphone via Apple Car Play and
Android Auto.
The exterior changes are minor and include the following changes.
• LED lights
• Front grille
• A three piece front bumper incorporating redesigned fog lights
Enhanced connectivity
The driver’s smart phone is the enabler of a range of services allowing Iveco to support
customers proactively by maximising their productivity.
Through this connectivity, Iveco want to improve vehicle uptime by putting the vehicle in
direct contact with the Iveco specialists receiving data in real-time. The specialists can
conduct diagnostics and identify issues before they occur by taking proactive actions.
Drivers can also optimise efficiency in real time through the new MYDAILY portal by
analysing performance, fuel consumption and even the vehicle's usage. Additional fleet
management solutions enable reduced expenses with improved vehicle tracking, fleet
utilisation, driver behaviour, advanced engine diagnostics and real-time mileage reporting.
New Iveco Daily review
10Glass's Monthly CV Market Report – May 2019
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Glass’s Monthly Market ReportMay 2019
Author:
Phil Curry, Data Journalist, Autovista Group
Contributors:
Anthony Machin, Head of Content, Glass’s
Andy Picton, Chief Commercial Vehicle Editor, Glass’s
Jonathan Wyatt, Analytics Manager, Glass’s
David Hill, Commercial Vehicle Editor, Glass’s
Media enquiries: [email protected]
Glass’s, part of Autovista Group
5th Floor, Wellington House
125 Strand
London
WC2R 0AP
w: www.glassbusiness.co.uk
p: +44 (0)20 3897 2500
T: @GlassGuide
Published by Glass’s Information Services Ltd. All material © Glass’s Information Services 2019. 11
And finally…
THE CV SHOW TOOK PLACE AT THE NEC IN
BIRMINGHAM LAST MONTH AND HERE IS A
PICTORIAL LOOK BACK AT SOME OF THE NEW
MODELS THAT WILL BE AVAILABLE IN THE UK SOON