A market crying out for good stock Glass's Information Services reveals that a shortage

13th May 2004, Page 92

13th May 2004

Page 92

Page 93

Page 92, 13th May 2004 — A market crying out for good stock Glass's Information Services reveals that a shortage

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of used CVs has created a sellers' market. With the supply of used vehicles struggling to meet demand, residual guidelines are being achieved and exceeded says George Alexander, chief editor of Glass's Information Services

Commercial Vehicle Values.

He reports that most sectors are currently sellers' markets, putting "vendors of any nice late-year fleet in an unusually strong position". Alexander highlights the high demand for two-axle chassis-cabs, with tipper, dropside and curtain sided bodies commanding high prices. Multi-axle tippers are also rare on the open market these days with only older or less desirable models being readily available,

and even these are selling straight away. After some shaky times in the 1990s the tractor market is "now considered to be fully rehabilitated and working well from top to bottom". New registrations are steady and are looking set to match 2003 levels but again there's a shortage of late-year used stock. Older models are

finding plenty of buyers too, says Alexander, courtesy of the reinvigorated export market.

Operators are still buying good quality high-power vehicles regardless of age. But Alexander warns that as the tractor market moves into a second year of improvement we could see "prematurely inflated residual expectations for every artic available" regardless of spec. And that goes for fleet specced

vehicles too. "For all but the nicest examples, those disposing of fleets would be well advised to keep their expectations at a reasonable level," he warns.

At the other end of the market strong demand for car derived vans also remains high, which is maintaining residuals. The Peugeot 206 HDi is cur

rently at the top of the shopping list in the open market, with the Corsa,Fiesta, Clio and Punto in close contention. The Connect is leading the way in the middleweight van market with Ford effectively controlling numbers entering the open market to maintain used prices.The VW Transporter and

Mercedes-Benz Vito have come under increasing pressure from the new generation of Vauxhall Vivaro, Renault Trafic and Nissan Primastar.

That other badged trio of vans, the Fiat Scudo, Citroen Dispatch and Peugeot Expert, remains popular by offering a lower priced alternative with comparable versatility.

Nissan's Vanette has also enjoyed a good couple of months with demand coming from trade and retail buyers. Examples with sensible mileage and in good condition are easily reaching Glass's Guide prices. In the 3.5-tonne panel van market the Ford Transit continues to get firm prices. However, Alexander reveals that late

year Transits are having mixed fortunes:"No longer isolated to RWD, the FWD range has suffered some downbeat trade sentiment," he reports.

Alexander says one problem used dealers face is the number of vans entering the used market with a range of designs and power to suit all needs: "Though this wider choice is good news for the buyer, it places residual values for some reputed vans under pressure." The severe shortage of long-wheelbase, high-powered Mercedes-Benz Sprinters has allowed this popular model to take centre stage in the 3.5-tonne market, helped by its "rock solid reputation for reliability". •