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Keltruck has bought East Midlands Commercials and it has big plans...
Page 71
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Fo lowing the purchase of East Midland Commercials, independent Scania dealer Keltruck has become one of the truck industry's biggest players.
The sale was completed in December and it means a significantly bigger portfolio for the West Bromwich-based company. The two businesses became one on 1 January 2005; its now selling from sites right across the Midlands.
After a strong 2004 Keltruck has budgeted for an even better 2005. Last year Keltruck sold about 300 used vehicles its target this year is 579. General sales manager David Morgan believes this target can be hit: "Last year was a storming year for both Keltruck and East Midlands Commercials. The future is orange -or blue, if you're at Keltruck but it's looking good. We're selling on a wider scale with Phil Holmes continuing as the used vehicle sales manager for his area."
That higher target comes from the purchase, which gives Keltruck three dedicated used truck sites: the original at West Bromwich, headed by Morgan; the Burton site, headed up by Holmes; and a brand new outlet at Newark.
; The difference is now that Morgan and Holmes, who would have bid on the same trucks, will now be working as a team. While volumes should remain consistent Morgan is pleased with the residuals, although a clear difference in asking price has grown between the 380 and 420 engines on 6x2 tractors.
The 380 is a fantastic engine and there is still a market for them," he explains, but the kudos is with the 420 engine. That's want people want. Its price has held while the 380 has dropped away."
The Topline trucks and V8 engines are popular to the point that Morgan is struggling to get them in at reasonable prices for the forecourt: "Some are available but owners are asking the right money and are selling them privately."
Tippers remain popular and there are three and fouryear-old examples around, but they are commanding premium prices. Morgan sold one 1999 V-reg muckaway with a day cab for £25,500 (ex-VAT), which by his own admission is "very good money".
Three-axle tippers are rareMorgan points out that Scania hasn't sold that many new. Curtain-sided two and three-axle rigids with the nine-litre engine are still popular.
• Marketplace will be reporting on the Newark stte soon.