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Dealers inflating prices

28th August 2003, Page 46
28th August 2003
Page 46
Page 46, 28th August 2003 — Dealers inflating prices
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Which of the following most accurately describes the problem?

• A yawning gap is opening up between prices for used trucks at franchised dealers and independent outlets.

Independent dealer Martin Rhodes says it's because manufacturers are attempting to keep the prices of ex-contract trucks artificially high, and not offering dealers sufficient margins to 'wheel and deal'.

"In 80% of cases, their prices are unrealistic," he contends. "They're not In touch with what the used market Is actually doing, and what their products are really worth."

He dismisses the argument that franchised dealers are entitled to charge more because their trucks have undergone a multi-point check, service, MoT and come with a warranty. "None of that justifies the premium they're trying to charge," he says. "As for the warranty they offer, it's easy to buy one that's Just as good off-the-shelf, if that's what you want.

"It will be the same as the one provided by manufacturers. but packaged differently. As for the aftersales support provided by franchised dealerships. some of the leading independents are as big as many franchised outlets and offer many of the same facilities."

Commenting on the general state of the used truck market, he says that while there's usually a downturn in the summer months, some sectors of the trade are quite busy.

"Run-of-the-mill stuff struggles, but anything with unusual specifications will always find a buyer," he remarks.

"It also seems to be the case that anything priced at up to 110,000 will sell," Rhodes continues. "That's the sort of sum a lot of people have available to spend—and it will buy you a lot of truck.

"it'll certainly get you a V

registered 7.5-tonner, although prices clearly vary a bit depending on the chassis.

"It'll get you an S-registered tractor unit too," he reckons.

"You'll definitely be able to buy a Renault for that sort of money, and you'll have no trouble at all getting an Ivaco," concludes Rhodes.

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