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Subbies' caution hits tractor sales

13th April 2006, Page 70
13th April 2006
Page 70
Page 70, 13th April 2006 — Subbies' caution hits tractor sales
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Which of the following most accurately describes the problem?

One dealer finds sales falling after several hauliers' collapse, but others say business is good.

The number of subcontractors hit by the recent collapse of several high-profile hauliers is having a damaging impact on the second-hand tractor unit market, according to independent dealer Martin Rhodes of Rhodes Truckworld.

"Subbies tend to be the people who buy used, and many of them are thinking twice about purchasing vehicles after what's happened," he reports.

And that's had news for a market that, in Rhodes' view, is already in the doldrums and is likely to remain there for some time:"Business isn't what it should be, and! don't think anybody is doing anything fantastic so far as sales are concerned.

"Selling one to two-year-old tractor units isn't usually a problem," he adds. "Three to Eve-year-old units can present more difficulties, however, because they're too old to interest a lot of UK customers, but often too young to export.

"As a consequence values have dropped dramatically, and bear little relation to what the guides say." But some dealers are quite happy with the sales levels they're achieving. Ron Cotmsell, sales manager at the Cardiff Renault dealership EnglandsTruck Care, reports that used business is buoyant, with plenty of interest in Premium and Magnum tractors.

And the used truck operation run by Daf dealership Watts has almost run out of stock thanks to a healthy level of demand. Used truck sales manager Mike Curtis says:"I think it's because a lot of hauliers would rather buy late used than new to avoid having to bother about digital tachographs.

"They're also aware that if they buy now they're buying Euro-3, and as a consequence won't have to concern themselves about Euro-4 for some time to come.

"We're even finding that some customers are accepting trucks that aren't what they originally wanted," Curtis reports. "They're taking CFs rather than X.Fs, for instance— and are happier to do that rather than get involved in the Euro-4/digital tacho business before they have to." Rhodes doubts that Euro4 is having a major impact as yet "I believe it's starting to though—so are digital tachos— and should stress that while the tractor unit market is tough, there's lots of interest in niche market rigids:26-tonners, tippers with grabs, and so on. They don't fluctuate in value in the way that tractor units do."

"There seems to be plenty of demand for 1S-tonners too," he adds."Dafs and Scanias are undoubtedly the most popular by far, with Mercedes down at number three and Volvos failing to attract quite so many buyers these days."


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