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The brighter side of the used market
Page 52
Page 53
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Optimism is beginning to filter through the used market, as interest from operators is starting to transform into concrete deals.
Words: Steve Banner
Dealers are presenting a mixed picture of the used truck market as late spring turns into early summer. Expressing some optimism about the state of play in the used truck sector is Matt Hammond, used vehicle sales manager at West Thurrock, Essex-based dealership Harris DAF.
"There's plenty of interest in vehicles at all weights, and we're moving a small but significant number of late-plate tractor units — 06s and 07s," he reports. "Things are improving, although the market is still some way behind where we'd like it to be.
"We've been shifting quite a few 75-tonners; we're short of 18-tonne curtainsiders and we've had enquiries about eight-wheelers," he continues. "Six months ago, I'd rather have had swine flu than an eight-wheeler in stock.
"Rising demand for tractor units with desirable specs means we're starting to see shortages compared with the start of the year," Hammond states. "I've been looking for a clean 06-registered XF95 480 Super Space Cab 6x2 with the right sort of mileage; I've yet to find one.
"Prices are still down compared to where they were, but they will start to rise," he predicts.
When they do go up, it may be in substantial jumps rather than tracking a slow, steady curve.
"A unit priced at £30,000 one month could shoot up to £38,000 the next, so operators might want to think about buying now," Hammond suggests.
Thinking positive
One reason why certain models may be in short supply is that some operators that have already bought them under contract-hire agreements are extending their leases for an extra year. Another is that export markets are taking younger vehicles than they used to the days of shipping scrap to Africa have now gone.
"We may find that some of these vehicles are sold in the UK as domestic demand picks up rather than sent overseas," Hammond reveals.
Also adopting a more positive attitude is Jamie McDonald of Eye, Suffolk dealership Roy Humphrey. He tells CM that he is receiving a lot more enquiries. 'Although business is not as good as it was 12 months ago, and you still have to work hard to make sales, things have certainly picked up," he says. "We're having to go out and buy stock to meet the demand.
'We're finding that desirable vehicles that were freely avilable as little as two months ago aren't so easy to o tain now, and they are certainly holding their value.
"People are asking us for big-cab Scania V8 6x2 tractor units and some 6x4 units we had in recently flew out of the door at very respectable prices," McDonald continues. "I wish I could get hold of another hall-a-dozen. "At the same time, we're also seeing demand for run-ofthe-mill units with analogue tachos."
T ade-in surprises
erators that are attempting to trade in eight to e-year-old units are receiving particularly unpleasant su rises, says Mike Curtis, former used truck sales manager at Worcester-based DAF dealership Watts Trucks, and who now works for the Forest of Dean-based dealer group as a consultant.
"They reckon that they'll fetch the same money as a s -year-old trade-in, but they won't," he observes. "The di culty with so many trucks of that age is that nobody in the UK wants them. The vehicles are often too old to appeal to exporters, and breakers may not always bt willing to take them.
'As a consequence, it's becoming increasingly difficult to get them underwritten," he says. "So what on earth are we going to do with them? Plant flowers in them?"
On a more positive side, however, specialised vehicles remain in demand, Curtis believes, and they are not easy toobtain.
"I know of one operator that is looking for a two to three-year-old 6x2 rigid that it wants to turn into a fuel tanker; and it is having a great deal of difficulty locating one," he says.
"While the UK market is not on fire, it's not dead, either," says Shane Wareing, used sales specialist at Yaxley, Peterborough Mercedes dealership Intercounty Truck & Van. "Its heart is still beating away and things are a lot better than they were at the start of the year "We've been selling one or two tractor units; we've just sold a six-wheel tipper and demand for vans has been strong, although it has started to tail off a bit," he says. "There's not much movement at 7.5 tonne or 18 tonnes though. We're getting a lot of enquiries for vehicles, but hauliers are often testing the water," he continues.
"They want to get an idea of what their existing vehicles are worth before they think about replacing them."
Valuing vehicles
As Curtis indicates, they may be in for a shock if they are not being realistic about current values.
"They assume that an old truck is worth, say, £6,000 as a trade-in when, in reality, it may be worth only £2,000 to £4,000," Wareing says.
Operators, though, are being more realistic in other ways.
"Having been through some trying times, the hauliers I talk to seem to be a lot more optimistic than they were," A Some tractor units with says Hammond. "At the same time, they're tightening up desirable specs and the ways in which they run their businesses.
the right mileage are hard "They're putting fuel price clauses into the contracts to come by for dealers they have with their customers; and they're being much more selective about the work they take on." •