p erceived wisdom says that sound residual values, coupled with a
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high customer perception of a product, is the best strategy for a vehicle manufacturer to pursue. However, it seems to have few followers among today's truck makers.
New vehicle (discounting is rife in the market. And while the manufacturers might say it's a bad thing for the industry, so far none has come up with a better alternative. The low prices on new chassis has clearly had an impact on used truck values— already artificially raised as the industry comes out of the recession and hit by a continued lack of good-quality, late model trucks.
The gap between new and used has narrowed so many hauliers which have been previously searching for a decent used bargain have bitten the bullet on new to enjoy the benefits of extended warranties and servicing. If this current level of new truck discounting continues truck residuals will clearly suffer and that will have an impact on the franchised dealers which specialise in used vehicles as well as the independent secondhand dealers. When it comes to current used values most lightweights are experiencing further modest downward movements. The trade reports these are necessary to reflect both the season and a slight concern over retail customers' acceptance of current price levels.
Car-derived vans are the hardest hit, but panel vans in the right condition are few and far between and consequently their val
ues are holding better. Non-HGV 7.5-tonners have not escaped the need to keep values attuned to the market with downward movements of around £250.
While 17-tonners have also recorded similar falls, heavy tippers are holding firm— any weakness in the tipping market is at the lighter end. Tractor units have suffered from a patchy market for some weeks and as a result their values have seen sizeable drops. For all dealers, whether selling new or used, vans or 38-tonners, stocks are low. For new vehicles lead-in times are growing with some heavy trucks being quoted for next spring. There will be some improvement below 3.5 tonnes during the next months as Ford gets its new models into full production. However, used stock remains both rare and expensive with few bargains to be found. Retail buyers of rigid trucks up to 17 tonnes may be finding a little more choice on dealers' forecourts and at the auctions, which in turn means that the trade grumbles at being starved of affordable stock! Traders see the auctions as their natural habitat and the recent inexorable invasion from van and truck operators is viewed as a big threat to their livelihood. However, as can be seen from the recent Transfleet sale at NCA's Mansfield branch, the auctions are clearly trying, to woo the end users rather than just traders. The attitude amongst the franchised dealers is that they all want to keep all late stock in their networks and relegate the auctions to moving on pre-1989 stock. As all the manufacturers want to keep their residual values up, it follows that they want their dealers handling used vehicles to retail their own trucks. However, it remains to be seen who can attract and retain the best used commercials.
After watching the likes of Leyland Daf and Renault push their used truck programmes hard, Iveco Ford Truck is consolidating its existing franchised dealer used truck operation. Having run with TruckSure for some three years it has now set up a new companyTruckSure Services Ltd—with its dealers. Its task is to manage IFT's used vehicle activities and residuals. Bruce Allison has moved from his previous position as aftersales director to head the new company. TruckSure Services will also be able to offer future used vehicle purchase commitments, via buybacks mainly from all IFT franchised dealers, not just those within the existing TruckSure dealer network. It will also develop the activities of IFT's franchised dealer used vehicle operation under the TruckSure umbrella.
All lveco Ford dealers will eventually 'participate in the new scheme, which will be backed by a national marketing campaign, although some of them will: "Clearly excel at it. Na dealer can afford to turn himself off from the used market," says marketing manager Chris Christianson. According to Christianson the scheme has been developed in conjunction with the dealer network: "It's not a companyimposed programme, they're looking forward to it."