It's time for a change of direction Used truck dealers
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need to diversify to secure prime stock, as lease and rental companies buy more new vehicles and bring disposal in-house More operators are choosing to keep their rolling stock off the balance sheets through lease and hire agreements. This, coupled with a strong demand for late-year Euro-5 trucks, means that those who lease and hire are cashing in when it comes to disposal.
As Annie Lennox pointed out, like sisters, lease and rental companies are doing it for themselves. For CVS Group see 02 Trucks, for Dawsonrentals its NTTS (National Truck & Trailer Sales), Alltruck has its Alltruck2, not to mention MV Commercial, Collease, and Leeds Commercials.
The shift in distinction is subtle. Two key figures for 2012, compared with 2011, show money lending for CVs is up 4% to £4.6bn (Finance & Leasing Association) and registrations for trucks weighing 6-tonne &NV and above is up 3.1% to 38,576 (Society of Motor Manufacturers and Traders).
To suggest both are due to operators choosing off-book transport solutions isn't convincing, but anecdotal evidence from manufacturers that the proportion of operators buying new trucks varies from 5% to 45%, and has been gradually declining since the recession began, adds some authority.
Lease and hire companies are squeezing supply to the independent used truck sector, but it's a strong, resourceful and diverse market that already copes with fewer but bigger hauliers, let alone lease/hire companies going it alone. To compete in the long term, trade might just have to join the new lease/hire club to secure its own supply.