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VED cuts could help 4x2s
Page 80
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II The changes to vehicle excise duty proposed by Chancellor of the Exchequer, Gordon Brown, in his pre-Budget statement could give 4x2 tractor unit sales a fillip in 2001.
So says David Nall, sales director at Scania dealership Derek Jones Commercials.
"We're already getting customers telling us they want 4x2s rather than 6x2s," he says. "When you think about it. a 38-tonner on five axles paying £1.200 a year in tax is going to be adequate for most people's needs, and it's cheaper to run a 4x2 than a 6x2.
"It might also mean that high-horsepower 4x2s will be increasingly sought after by used buyers. Unfortunately, second-hand 4x2s at 320hp and 340hp are likely to remain a problem."
"We've had a lot more enquiries for 4x2 tractors in recent weeks, thanks to the proposed VED changes,' says Steve Smith, of independent dealers Smith Brothers Services.
"However, most customers want them with big cabs and at least 400hp, and trucks that meet these requirements are a bit scarce. We might see prices rise as a result."
Late-registered, low-mileage examples have a special appeal to some buyers, he adds, because manufacturers are taking as long as six months to deliver new vehicles. "As a consequence, two-year-old trucks are particularly desirable, and can make good money."
Older 4x2s—M and N registered and earlier—are unlikely to benefit from the VED change, especially if they don't have the attraction of a powerful engine.
Looking at them from the viewpoint of somebody being offered part exchanges, Richard Berry, managing director of Eden dealership Cumbria Truck Centre, says the values of Ivecos and Renaults of this vintage have plummeted. Scanias, too, are suffering badly, he claims.
What happens to the used value of 13r/s if 4x2s become more desirable? They won't necessarily collapse, says Chris Wright, managing director of Commercial Vehicle Auctions. 'There will still be operators who will want to stick with 6x2s."
MI Dealers have mixed views about the likely strength of the truck market in 2001, and some predict it will fall.
"I think the underlying trend will be downwards, but a few big players—I'm thinking about the rental fleets—will keep it artificially inflated," says Richard
Berry, managing director of Foden dealership Cumbria Truck Centre.
"I think we'll see things quietening down a bit," says Ron Holmes, MD of MercedesBenz dealership S&B Commercials. "I wouldn't be at all surprised to see it fall by 10%, although I know that's a minority view."
He doubts that the introduction of 44 tonnes will make much difference. "That's a fairly specialist area, and not many operators seem interested," he comments.
Daf expects a slight drop in the market above 3.5 tonnes in 2001, from an estimated 53,500 this year to about 50,000 or 51,000.