Fuel Type: Plug-in Hybrid (PHEV)

LCV Marketplace Update August 2020

New Light Commercial Vehicle (LCV) Market

With the coronavirus lockdown easing and businesses back to work, it is encouraging to record a 7.1% growth in the new light commercial vehicle market. This follows four months of double-digit decline. Overall, 27,701 new LCVs were registered during the month, with growth in all but the Vans under 2.0-tonnes sector.

LCV new registrations graph August 2020

Performance year-to-date has declined 38.6%, with 136,577 units registered during the first seven months of 2020. Although July was an improvement on the same month last year, the initial pent up demand is likely only to mask a fragile market. Breaking the month down by sectors reveals that registrations increased 24.9% for Pickups, 12.0% for Vans between 2.0-2.5 tonnes and 5.4% for Vans between 2.5-3.5 tonnes, whilst Vans under 2.0 tonnes declined 22.0%.

Top five LCV registrations

The latest July SMMT new LCV registrations reforecast for 2020 is down 26.3% to 269,000 units for the year. Lockdown has placed all businesses under great financial pressure, with underlying weakness in the market.

Although there is a gradual improvement in demand, the UK is still a long way off normal. The pandemic has affected many businesses and a second wave of localised lockdowns has not helped.

The interconnected nature of the UK economy means that there is likely to be more uncertainty ahead as the UK grapples with a reduced appetite and business nervousness and the possibility of further regional lockdowns. Moving forward, fleet renewals will be critical to a successful restart and the UKs long-term green recovery given the crucial role light commercial vehicles play.

July Used Light Commercial Vehicle (LCV) Overview

With auction houses now at near full operational capacity, the used LCV market continues to deliver outstanding performance. Supply shortages and increased demand are keeping prices high at present however, there is a growing caution against the risk of weakening retail demand linked to a possible second spike in COVID-19 and further lockdowns.

Glass’s auction data suggests the number of sales in July were up 14.0% versus July 2019, with first-time conversions increasing for the fourth month in a row.

There is a growing appetite from trade buyers to purchase good quality stock. Sales of Euro 6 light commercial vehicles increased to just under 50% of the overall total in July, with the number of different online buyers increasing as well. Supporting this enthusiasm is data confirming average prices across all ages and sectors have risen 39.0% versus July last year.

July in detail

The average age of sold stock in July rose from 64.8 months in June to 69.5 months. This figure was 3.4 months lower than the same point last year.

Average first-time conversion rates stand at an extraordinary 92.3%, up from 86.5% in June and up from 76.7% 12 months ago.

Average mileage for sold vehicles stands at 71,878 miles, an increase of 2,226 miles on June but nearly 8,500 miles less than July 2019.

Glass’s continues to monitor the LCV market closely and has an open dialogue with auction houses and manufacturers, leasing and rental companies, independent traders and dealers as well as the main industry bodies. This information, combined with the wealth of knowledge in our CV team ensures Glass’s valuations remain relevant in the market place.

A golden age for used-car markets?

As the automotive industry starts its recovery following the coronavirus (COVID-19) lockdowns, there is a notion of unexpected recovery visible in some markets. Is this pointing towards a golden age for used-car markets? Christof Engelskirchen, Autovista Group’s chief economist, talks with Anne Lange, head of data science, and Markus Halonen, head of research, statistics & data analysis at Autovista Group, about signs of recovery and the root causes for different market reactions in the used-car market at this time.

Christof: Are we in a phase of the market, where the trends that we see can already be safely interpreted or is it is more affected by external events? I am referring to the massive incentive scheme in France, also for used-car buying, which has pushed RVs up. I am also referring to the weak-British-pound- and supply-shortage-induced lack of new and used cars on the market that meets pent-up demand and lifts prices?

Anne: There are certainly some anomalies affecting current used-car price trends. For example, the French incentive scheme, that subsidises used-car buying and drives RVs up and the UK’s shortage of supply of new and used cars, that also drives RVs up.

There is one emerging trend that may last longer: people may exhibit a financial cautiousness and rather turn to a used-car than a new-car. The lack of available new cars further compounds this. In addition, those that used to rely on public transport may opt for some budget alternatives, thus driving up demand for older used-cars.

Markus: The reason for the decreasing active stock (number of active adverts) is simply that dealers are selling more cars than they are buying in. For example, in Finland and Sweden, the used-car selling volume has been at a high level lately. In June this year, used-car retail sales volumes were higher than in June 2019. High sales but lower than normal inflow of used cars keeps the stock falling. We have some anomalies, like the French used-car incentive scheme, pushing RVs up. Still, even in those countries where schemes are different or non-existent, there are commonalities: used-car sales volume is at a good level, stock is decreasing and prices are increasing. On top of what Anne said, a reason for the currently good demand for used cars is that people are spending less money on vacation and spent less during the lockdown. Patterns of consumption have changed, at least temporarily. Used-car markets are seeing the benefits.

Christof: People ask you many questions around our methodology for publishing used-car price development. How sensitive is our methodology to outliers? How do we control for irregular market conditions? What is the lag in our published values, i.e. how quickly are we capturing trends that may emerge?

Markus: Our methodology is based on market observation data that we source from various portals all across Europe on a daily basis. We control for outliers, data errors and non-actively managed cars. This works reliably.

I am not sure what the background is on the question of controlling irregular market conditions. Irregular market conditions like the COVID-19 pandemic affect used-car prices and that is what we are capturing with our data models. For measurement accuracy, we have implemented rolling values, where past days’ trends are captured as well as the current day’s realities. We put more weight on recent values in the statistical models. There is only a very small lag in how fast we see emerging trends, much smaller than for any economic modelling.

The full interview can be read here. In it, Lange and Halonen discuss the trends emerging for old and young used-cars across Europe, and whether dealer activity has picked up following COVID-19 lockdowns. Their answers are backed up by data showing the emerging patterns of used-car prices and stock levels in the market.

The Van’s Headlights: Mercedes-Benz Vito

Whilst some manufacturers suggest their vehicles are the backbone of Britain, others mention fitting everything and some always work with you, Light Commercial Vehicles really have delivered during the pandemic. In this month’s edition of The Van’s Headlights, we consider the merits of the Mercedes-Benz Vito 114CDI Long 2.1-litre 136bhp Euro 6 RWD van (2015 – 2019).

The Glass’s Commercial Vehicle Editorial Team continue to scour the market in search of models offering the highest levels of versatility and durability whilst adding their experience to spot the best value for money available.

The Mercedes-Benz Vito

The first generation Mercedes-Benz Vito launched in 1996. Built in Spain, it heralded an initial foray into medium sized vans for the German manufacturer. Available in a single body length, power came from a choice of 140PS petrol or 120PS diesel front wheel drive (FWD) powertrains.

The second generation Vito was available between 2003 and 2014. With three lengths – Compact, Long and Extra-Long – power for the range came from a rear wheel drive (RWD) 2.1-litre engine for the 109CDI 95bhp, 111CDI 109bhp and 115CDI 150bhp models and a 3.0-litre V6 diesel engine for the 120CDI 221bhp model. As well as the panel van, a Dualiner crew van and a Traveliner 9-seater was also available. This range featured improvements to design, safety, performance and comfort and was the first van range to adopt Adaptive ESP® as standard for a smoother ride in all conditions.

The Vito received a facelift in 2010 changing the model naming to 110CDI, 113CDI and 116CDI. Improvements included restyled front and rear lights, front bumpers and grille and also enhancements to the suspension. Internally, there was improved instrumentation, steering wheel, and cabin materials. Improving fuel consumption and emissions, BlueEFFICIENCY diesel engines adapted from the Sprinter range were also introduced at this point. New drivetrain options included 4MATIC four wheel drive and a 5-speed automatic. The Vito E-Cell 36kW all-electric van was also revealed in 2010.

Introduced in 2015, the third generation Vito launched in North America for the first time as the Metris. Offered with new standard features including tyre pressure monitoring, Crosswind Assist, Active Park Assist and a 6-speed manual gearbox. New price listed options included the 7G-Tronic seven-speed automatic gearbox, LED indicators, LED daytime running lights, LED low beam headlamps and main beam cornering lights. At this point the Traveliner was also renamed the Tourer.

The renamed 109CDI and 111CDI manual transmission models were available as FWD only and powered by the 1.6-litre Renault derived diesel engine fitted to Renault’s Trafic range. The 114CDI, 116CDI and 119CDI models were RWD only and powered by Mercedes-Benz own 2.1-litre BLUETEC diesel unit, available with either manual or automatic transmissions. Euro 6 compliant engines were launched in 2016.

Further updates took place in 2019. Dedicated ‘Pure’, ‘Progressive’ and ‘Premium’ trim levels launched across the range, whilst a halo ‘Sport’ model was introduced on the 116CDI and 119CDI only. The production 41kW eVito electric van was also launched.

In early 2020, Mercedes-Benz launched a facelift for Vito, limited visually to a new radiator grille and interior detail changes. Under the bonnet, the 2020 Vito included new fuel efficient WLTP compliant 6-speed 1.7-litre engines for the FWD models. The RWD models are powered by an all-new 9G-Tronic 2.0-litre unit. Beyond this there are additional safety technologies including a digital rear-view mirror, autonomous emergency braking, ‘Distronic’ active cruise control and a new air suspension system.

A practical evolution

Andy Picton, Glass’s Chief Commercial Vehicle Editor recommends the Mercedes-Benz Vito as “a practical van with a varied number of configurations and payloads.”

Andy added, “Over its near 25-year life, the Mercedes-Benz Vito has continued to evolve, always a leader when it comes to safety and technological improvements. The Vito has a wide choice of models and is currently the only manufacturer to sell their medium sized van range in front, rear and all-wheel drive”.

Mercedes-Benz Vito 114CDI Long 2.1-litre 136bhp Euro 6 RWD van (2015 – 2019)

The Mercedes-Benz Vitorange

  • Three van body lengths, Compact, Long and Extra-Long
  • One roof height
  • Two wheelbases
  • Front, rear and all-wheel drive
  • Five power ratings
  • Manual and 7G-Tronic automatic gearbox
  • Three gross vehicle weights
  • Diesel and electric power
  • One trim level
  • Bodies include
    • Panel van
    • Crew Van
    • Tourer 9-seater
  • Euro 6 engine line up

Standard specification on the Euro 6 Vito included cruise control with Speedtronic variable Speed Limiter, multifunction steering wheel with trip computer, and high-resolution 5.8-inch TFT display Audio 15. This version of the vehicle also has Bluetooth®, USB and aux-in port, iPod® interface, and SD memory card slot.

Safety features included Adaptive ESP®, Adaptive Brake Lights, Attention Assist, Crosswind Assist, driver and passenger airbags, Hill-Start Assist, reflection-style headlights with daytime running lights, Rescue Assist QR codes, and a Tyre Pressure Monitoring System.

The recommended 2018 Vito benefitted from Mercedes-Benz smooth 2.1-litre BlueTEC engine fitted to all rear wheel drive models of this version.

Mercedes Benz vito dimensions table