Manheim Australia witnessed a remarkable surge in wholesale used vehicle auction volumes in 2024, with an increase of 35.6% compared to the previous year. This marks the highest level of activity since 2020, driven by strong growth across various sources, including fleet management organisations, OEMs, and government entities. For fleet managers, this growth highlights emerging opportunities and key trends in the used vehicle market that warrant attention.
Record-Breaking Auction Performance
Manheim’s auction volumes hit a four-year high in 2024, supported by consistent double-digit percentage increases across all Australian states and territories. Leading the charge were Brisbane (+45%), Melbourne (+37%), Perth (+34%), Adelaide (+31%), and Sydney (+26%).
Notably, the number of vehicles sold on behalf of fleet management organisations reached a new record, surpassing the previous milestone set in 2004. This surge underlines the growing significance of auctions as a channel for fleets to manage end-of-life (EOL) vehicles effectively. For fleet managers, participating in these auctions can provide greater liquidity and optimised resale values.
Stabilising Prices After Decline
While average wholesale prices remained below their mid-2022 peaks, the Manheim Price Index signalled a stabilisation in the latter half of 2024. The index ended December at 130.7, representing a 30.7% increase in prices since December 2019. Although prices were down 22% from their 2022 highs, the less than 1% decline in the second half of 2024 suggests the market is approaching a price floor.
Older vehicles aged 8-10 years saw the most significant price gains, with a 53.7% increase over 2019 levels, compared to 35.1% for vehicles aged 5-7 years and 26.8% for those aged 2-4 years. Fleet managers should note the ongoing demand for older, more affordable vehicles, which can sustain strong residual values for trade-ins and decommissioned assets.
Key Vehicle Segments and Trends
Passenger cars, including sedans, hatchbacks, and wagons, continue to dominate auction demand, with prices averaging 45% higher than in December 2019. These vehicles were also quicker to sell, reflecting supply constraints in this segment. In contrast, SUVs and light commercial vehicles (LCVs) saw more moderate price increases of 17.4% and 20%, respectively.
The Toyota RAV4 emerged as the fastest-growing vehicle at auction in 2024, with a staggering 691.2% year-on-year growth in sales for ex-fleet models aged 2-4 years. Other top performers included the Ford Ranger (+41.6%), Toyota Corolla (+63%), Toyota HiLux (+49.6%), Toyota Camry (+40.5%), and Isuzu D-Max (+49.3%). For fleet managers, these trends highlight the strong resale potential of popular models, particularly when they are well-maintained and relatively young.
The Rise of EVs in Auctions
Electric vehicles (EVs) represented a small but rapidly growing segment at Manheim auctions in 2024, with sales volume up by an impressive 116.2% year-on-year. This growth reflects increasing adoption by public and private fleets, as well as a burgeoning market for used EVs.
Manheim’s introduction of dedicated EV auctions, which sold 100% to private buyers, points to the importance of creating specialised platforms to meet evolving market needs. For fleet managers, this trend signals a growing opportunity to remarket used EVs effectively, especially as public awareness and demand continue to rise.
Implications for Fleet Managers
Fleet managers can draw several key insights from Manheim’s performance in 2024:
- Maximising Resale Value: With auction volumes at record highs, leveraging these platforms can help fleet managers achieve competitive resale prices for EOL vehicles. The stabilisation of wholesale prices further supports this approach, offering predictability in valuation.
- Capitalising on Popular Models: The strong performance of vehicles like the Toyota RAV4 and Ford Ranger underscores the importance of aligning fleet acquisitions with market preferences. Maintaining these high-demand models in optimal condition can significantly enhance resale outcomes.
- Exploring EV Opportunities: As EV adoption grows, fleet managers should prepare for the eventual remarketing of electric vehicles. Participating in dedicated EV auctions can provide a targeted audience and maximise returns.
- Navigating Price Dynamics: Understanding the varying price dynamics between older and younger vehicles is essential. Older vehicles—particularly those aged 8-10 years—continue to attract high demand, making them a valuable asset in the secondary market.
Looking Ahead
Manheim’s outlook for 2025 suggests continued growth in auction volumes and a stabilising Price Index, which could potentially tick upward. The company plans to expand its offerings with more bespoke EV auctions, franchise dealer events, and enhanced digital tools for buyers and sellers.
For fleet managers, staying attuned to these developments will be crucial in navigating the dynamic used vehicle market. By leveraging auction platforms effectively, optimising vehicle maintenance, and aligning fleet strategies with market trends, managers can unlock significant value and stay ahead in an increasingly competitive landscape.
