Cause and effect
Page 48
If you've noticed an error in this article please click here to report it so we can fix it.
Supply looks set to remain the key issue for the used truck and van market, says Manheim Remarketing, as reports surface that dealers have stopped stockpiling Euro-4 trucks ahead of next year’s planned changes to London’s LEZ
Words: Kevin Swallow
volumes of trucks and vans in the auction hall, and in the used CV market, will continue to fall in 2012 as the knock on effects of the recession kick in.
Manheim Remarketing predicts that
Registrations for trucks (6 tonnes and over) dropped by 36.2% from 48,706 units in 2008 to 27,938 in 2009, according to the Society of Motor Manufacturers and Traders. This new record low for the heavy truck sector was beaten in 2010 when it registered only 27,588.
Brian Rossington, Manheim’s national HGV and plant manager, says the shortage of vehicles available to the open market will continue for another 12 to 18 months at least, and that there are already signs that retail purchasing by operators has started to fall away.
Online buyers
“Buyers are searching further aield than ever before and online bidding is playing a signiicant part in every auction. Half of the trucks that go under the hammer are sold to online bidders,” he says.
Late-registered, low-mileage trucks remain highly sought-after, speciically Euro-4 and Euro-5, he adds. “Speaking with buyers, they generally describe the market as steady, with the London Low Emission Zone [LEZ] changes in January 2012 helping the market along nicely in recent months.” Rossington says demand for Euro-4 vehicles has far outstripped supply, but there are reports that several used truck dealers have stopped speculatively buying Euro-4 stock.
Insufficient demand
The main reason appears to be that the key driver, the LEZ changes, has already been addressed by the majority of operators that drive into London and that there is now insuficient demand to justify hoarding desirable trucks. This suggests the peak demand and strongest values for Euro-4 may have passed.
“The export market is also going quiet in some areas as the price for certain stock is too high, but on the whole, demand is holding up well, with the most popular trucks being three-axle tractor units and multi-axle tippers,” he says. Truck export remains an important market as it underpins the rest of the used CV sector. A third of auction truck lots sold head overseas, but it is a market that is changing. Russia only accepts trucks up to threeyears-old, Kenya is establishing an emission standard for imports, and there are new markets down under.
“Australia, Malaysia and New Zealand are now looking to the UK for supply because Japan, their traditional main supplier, is unable to deliver new trucks and vans,” he says. This is the knock-on effect of the Japanese tsunami and nuclear disaster. The van sector is also reporting a slowdown in retail activity as the number of vans up for sale continues to fall. James Davis, director of CVs, says buyers are having to travel further to source stock and are wary of damaged and duplicated stocks. “Supply is likely to track well below demand,” he says. ■