SALES of fleet and lease vehicles YTD have doubled at Manheim compared to the same time in 2022 with the auction house saying these vehicles now represent one of the fastest growing segments of the business. 

The auction house reports that sales were up 30 per cent in August and 42 per cent up in all states and territories YTD across fleet-lease, OEM, dealer and government areas. 

However, wholesale auction selling prices are down 7.6 per cent YoY and 20 per cent since the 2022 peak.

Sales of hybrid vehicles are up almost threefold (192.1 per cent) YoY, led by an influx of ex-fleet Toyotas. The predominant sources of these vehicles are major players LeasePlan, SG Fleet, Custom Fleet and Summit,  reflecting the market’s increasing uptake of things like novated leases. 

Manheim is stepping up its frequency of FMO-focused auctions and putting greater resources into working with this sector. For example, the first dealer-only national auction for LeasePlan and SG Fleet since before COVID yielded an 86 per cent successful sales rate on 151 late-model vehicles offered. 

It has also appointed Daniel Colina from BMW Australia to be the company’s new head of  fleet, government, corporate & rental, and is strengthening ties with relevant organisations such as the National Automotive Leasing and Salary Packaging Association (NALSPA). 

Overall, Manheim wholesale car volume – excluding salvage and industrial – was up more than 30 per cent in August YOY and is running 42 per cent higher compared to the same January to August period in 2023 (YTD). 

August was the  second-largest month for sales this year after July, with volumes running at four-year highs. 

In addition to the strong fleet lease sales growth (up 47 per cent YoY), Manheim is also observing strong volume increases in vehicles being sold on behalf of:

• OEMs (up 71 per cent including dealer-only and public auctions)
• Dealers (up 48 per cent)
• Government departments such as QFleet (up 47 per cent)
• Rentals (up 56 per cent). 

Manheim said that the volume increases YoY are consistent across Australia, with the greatest incremental volume coming through;

• Melbourne (up 46 per cent) 
• Brisbane (up 51 per cent). 

Manheim is also seeing strong percentage growth in:

• Adelaide (43 per cent)
• Darwin (86 per cent)
• Hobart (20 per cent)
• Newcastle (30 per cent)
• Perth (43 per cent)
• Sydney (20 per cent). 

While the growth is strengthening, Manheim cautioned that vendors and buyers should be aware of a cooling of average wholesale prices.

These prices are down on average 7.6 per cent this year and around 20 per cent since the middle of 2022, when vehicle shortages were driving up  transaction prices.

However, auction prices are still up 32 per cent since December 2019, meaning vendors should expect reasonable returns for their assets. 

This is particularly the case on older assets, for example average prices of 2-4  year old passenger cars are up 39.6 per cent since late 2019, whereas those aged 5-7 are up 50 per cent by contrast. 

Traditional passenger cars (hatchbacks, sedans, wagons etc) remain much more elevated on the Manheim Price Index than SUVs, which are in greater supply, with light commercial utes and vans somewhere in the middle. 

From a fuel-type perspective, sales of hybrid vehicles are up almost threefold (192.1 per cent) YOY, led by an influx of ex-fleet Toyotas, coinciding with the arrival of new stock. 

EVs remain a small part of the overall mix and there are some well-publicised challenges around residual values, however Manheim expects a steep uptick in volume from 2025 and will have battery state-of-health testing and EV-only auctions available for vendors to maximise consumer confidence. 

Some other recent company highlights include the return of fortnightly Adelaide auctions, the launch of a simpler new Online Invoice Portal, and Manheim’s car buying service, Sell My Car, passing 50,000 cumulative car sales over 10 years in operation. 

The top-five models sold at Manheim in 2024 YTD, in order of volume, were: 

• Ford Ranger, up 39.6 per cent
• Toyota Camry, up 68.8 per cent
• Isuzu D-Max, up 79.5 per cent
• Toyota Corolla, up 87.8 per cent
• Toyota Hilux, up 43.6 per cent.