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LOOK BEFORE YOU LEAP INTO EURO-3
Page 3
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If you're in the market for new trucks -and judging by the size of last year's new truck market there's a good few of you who are-you face a dilemma. In October this year the Euro-4 emissions legislation comes into force, demanding even lower limits to exhaust emissions. Inevitably, Euro-4 vehicles will be more expensive than their Euro-3 predecessors.
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However, we'd advise against making a hasty decision, because the lower purchase cost of Euro-3 is by no means the whole story. In 2008 London will be introducing a low-emission zone' (LEZ) and other councils may well follow suit. The details aren't yet clear, but it's a good bet that by 2010 just when you'd be planning to sell on your four-year-old Euro-3 wagons there will be strong cash incentives for Euro-4 machines, while Euro-3 vehicles delivering into LEZs will be hit with heavy penalties.
As a result, the residual value of your Euro-3 trucks will plummet.
This makes the sums more complicated; only you can make an informed decision about the flexibility of your company's cashf low position. The temptation to save a few quid off the purchase price today is undeniable. But if those vehicles become almost unsellable because it will cost a fortune to drive them into a city centre, then your initial saving could turn into a costly mistake. Our advice is to buy your trucks as you originally planned. Don't get caught up in the mad Euro-3 scramble and ensure you don't expose yourself to any long-term risks. Working in road transport is a constant battle with the unknown but there are some things we can see clearly.
It makes sense to take note of them doesn't it?