The gospel of
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affordability
Operators are choosing older used trucks to meet their needs rather than committing to a new truck and a long-term finance deal
Words: Steve Banner Sales of older second-hand trucks are enjoying a mini-boom, say dealers, as cautious hauliers, wary of committing themselves to a finance deal in the current economic climate, count their pennies.
“We’re finding that there’s plenty of demand for 2006-vintage tractor units, although the market is very up and down,” says Jamie McDonald. Based at a site not far from Besthorpe in rural Norfolk, he runs independent dealership RJM Commercials.
“We recently sold three 2006-registered 480hp Volvo FH 6x2s with XL cabs for £19,995 each, all on the same day. They’d done around 540,000kms apiece. We’ve just sold a couple of 06-plate Scania tractor units for £25,000 each, too.
“The operators we deal with are often in a position to write a cheque for up to around £20,000 without having to sign a finance agreement,” he says. “In fact, many prefer to go that route rather than buy a £30,000 to £40,000 truck on finance, even though they could probably afford to do so, because they don’t want to borrow money given the way the economy is.
“That’s not to say we’re not seeing any demand for younger vehicles. We’re getting more and more enquiries about 2007and 2008-registered trucks, and some of our callers are asking about Euro-5 models, although many of them still cost a little bit more than a lot of our customers are willing to pay. That said, we’ve managed to sell around eight or 10 Euro-5 Daf XF105 480hp units with Super Space cabs and did quite well out of them.
Newer trucks
“We’re also dealing with one operator who has decided to buy a fleet of newer trucks on the basis that the haulage business cannot get any worse and has got to come right sooner or later. He wants to be ready when it does.” Independent dealer Dave Higgs of Kidderminster, Worcestershire-based DH Commercials, says: “Hauliers are looking for what I would call affordable trucks: ones they can buy without having to get finance.” The sort of vehicle he has in mind is a 2006-vintage Renault Magnum 6x2 he has in stock with 590,000kms recorded and a £9,750 price tag. It’s Euro-3, but a lot of metal for the money.
“We’re certainly finding that trucks dating from 2005 to 2007 priced at £15,000 to £20,000 are in demand, although I suspect that a lot of them are being purchased for export,” says Chris Shaw, disposals manager at Stanton, Ilkestonbased used vehicle operation Q2 Trucks, which is owned by finance house Close Brothers.
Otherwise, he is finding the used market tough going. “It’s been quiet for us since Easter, with enquiry levels maybe a quarter of what they were previously,” he says. “Demand for later-registered trucks is especially quiet.” In charge of used vehicle activities at Daf dealership F & G Commercials, Nigel Sharp has also experienced a downturn. F & G runs sites at Huddersfield, Barnsley and Oldham. “It’s hard going at present and we’ve not been breaking any records,” he says. “Sales of late-registered used trucks – if you can get hold of them – are being hit by some extremely competitive deals on new vehicles.” The lack of big-cab, high-horsepower, late-plate tractor units still frustrates many dealers, although fleet specification units seem to be more readily available.
Ideal vehicle
The gospel of affordability is affecting the light commercial market too, says Higgs. “There is huge demand for the 3.5-tonne 2005/2006 ex-Tesco home delivery vehicles we’ve got. The bodies aren’t a lot of use to most people, so we’re selling them as chassis cabs from £3,000 to £3,750. They’re proving really popular.” Add a dropside or tipper body and you have the ideal vehicle for not a lot of money for a self-employed builder or roofer “People want vehicles they can buy for cash or put on their credit card,” says Higgs.
One development Sharp has noted is the high mileage recorded by a growing number of 26-tonners that have just been disposed of by their first owners.
“We’re seeing quite a few four-year-old examples that have covered well over 400,000kms, despite the fact that the guides tend to work on the basis that a 26-tonner of that age should have done no more than 320,000kms,” he says. “Operators are using them on long-haul work that a tractor unit and semi-trailer might have handled in the past.
“They seem to take the view that if they haven’t got enough to fill an artic, they might as well use a solo rigid with a 30ft curtainsider body instead. They’re keen to do so because, whereas an artic will average perhaps 8.5mpg, a 26-tonner will return more like 11mpg to 12mpg.” The downside is that the consequent higher-thanexpected mileage is putting off some prospective buyers. ■