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Demand for late-plate stock stays buoyant

15th March 2007, Page 70
15th March 2007
Page 70
Page 71
Page 70, 15th March 2007 — Demand for late-plate stock stays buoyant
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Which of the following most accurately describes the problem?

It isn't only fear of technology that is creating demand for Euro-3 trucks — lead times on new products are playing a part. Steve Banner reports.

Long lead times on new trucks are fuelling demand for late-registered Euro-3 .ractor units with analogue .achos almost as much as verators' concerns over Jigitachs and Euro-4.

Andy Mackay, used sales specialist at the Manchester oranch of Daf dealership Chatfields, says that while some ;mall hauliers are still worried about digitachs and Euro-4/5, most operators have become resigned to them."The length of time you have to wait for new trucks is a real problem for them, however," he adds.

-Order a new truck now and you won't see it until September in most cases," says Paul Prewett. general manager. used sales, at East of England Scania dealership TruckEast.

But he contends that wariness over Euro-4 and digitachs remains the key driver in the late-plate sector of the used market: -Even if employees have smart cards, in many cases their employers won't have the necessary hardware and software to download the data they contain and analyse it."

No matter what the cause, demand for late-plate tractors remains remarkably buoyant. "Late XF95s are going really well, and both Spacecabs and Super Spacecabs are proving to be good sellers," Mackay reports.

"Nor are buyers too worried about the power output.They prefer 480hp,but if that's not possible they'll happily take one at 430hp.As for late CF85s, there aren't many about and they're selling well too.

"Prices are pretty good across the board, but dealers have to be careful not to ask way too much for vehicles," he adds.-If they do, they can be sure that operators won't forget it.

Best months ever

Late-registered vehicles are not the only strong sellers, according to Stuart Wolstenholine, used truck sales manager at the Middleton, Manchester branch of Scania dealership West Pennine. He tells of near-unprecedented demand for almost everything not just late-plate low-mileage stock: "January and February were equal to the best months we've ever had and it hasn't let up since. There's no pattern to it... I wish! knew what was driving it.

"We're receiving so many inquiries that it's hard to keep up. Buyers are even after our second-hand company cars and parts vans.

"Things didn't stop at halfterm," he says. "Customers were still rolling in, the only difference being that they were bringing their kids with them.

"About the only things! have that aren't flying out of the door at the moment are 18-tonne fridges. I've got three and so far I've only had one inquiry.

"R124 tractors with either Topline or standard sleeper cabs are in big demand, and operators are now willing to take examples with Opticruise. I took in nine fitted with it and only three are left. Nor is there any indication that prices are dropping.

"We're not seeing many partexchanges though, and what may be happening is that exporters are contacting operators direct," he suggests.

Stock shortages

Matt Hammond, used vehicle sales manager at Harris Daf of West Thurrock, Essex, points out that dealers can only take advantage of the buoyant market if they have stock to sell and stock shortages remain a problem:"Fortunately I've just acquired 10 CF85 430hp 4x2 tractor units dating back to 2004, all from the same operator.They *have standard sleeper cabs; they. ve only ever been plated at 31 tonnes and they should appeal to own-account operators moving everything from furniture to scaffolding.

"They're Euro-3 and analogue, of course, and it's worth remembering that a lot of ownaccount operators are no more enthusiastic about Euro-4 and digitachs than hauliers are.11 paid a lOt more for them than I would have done six months ago but able to sell them for more —although I'll be on the same prdfit margin. "As far as prices are concerned, while dealers say that they're really good at present, the truth is that they've reached the right level. Previously they were a bit too low."

LEZ concerns

Used customers are starting to ask Hammond if the vehicles they are considering will he OK for use in the London's planned low-emission zone (LEZ)."To be honest we have no more idea than anybody else," he admits.

"At least the prospect of the LEZ is prompting operators likely to be affected to get rid of their Euro-2 trucks, though.That's something they should be doing now anyway." •


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