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Sales down on last year

16th March 2006, Page 70
16th March 2006
Page 70
Page 70, 16th March 2006 — Sales down on last year
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Which of the following most accurately describes the problem?

Some dealers report prices of used Las are down in line with falling demand, but the advent of Euro-4 could boost sales of Euro-3 trucks.

SELLING SECOND-HAND trucks is tough going at present according to Lee Smith, a director of West Thurrock, Essex-based independent dealershipHaribury Riverside.

"Hauliers are finding times difficult and that's reflected in the level of demand in the used market," he reports. "It's also having an impact on prices they're a bit down compared with this time last year. As a consequence we've been working even harder than usual.

"We've been coming in on Sundays as well as Saturdays, we've been spending more on advertising, and we've also had to be a lot more flexible when it comes to valuing part exchanges," he adds. "We're fortunate that we've got a loyal customer base that generates a lot of repeat business."

-Things are quite slow, and you can't help but wonder what people are waiting for," says Tim Robinson, used sales manager at Hull MANERF dealership Torridon Commercial Vehicles."Usually things pick up towards the end of the financial year, but it's just not happening."

"Business is steady rather than brilliant," he says. That's a view echoed by Peter Fullelove, MD of Carlisle dealership Solway Dat"Trucks up to two years old are moving OK, but older stuff isn't doing quite so well." But Smith stresses that it's not all doom and gloom: -We've recently taken 17 low-height Daf XF95 430hp 4x2 Space Cab tractor units into stock, all just over 12 months old and on 54 plates, and we've already sold eight of them." Customers include people in the music industry who want to use straight-frame trailers to transport stage equipment.

Late-registered trucks like these could become even more appealing later in the year. Some operators who might otherwise have bought new may opt for them because they want to avoid early adoption of Euro-4 and digital tachographs. "Digital tachos represent the unknown so far as most hauliers are concerned," Smith points out. "So does Euro-4 and of course you'll be paying a premium for the technology on new chassis without being entirely certain about its fuel consumption."

Darius Fell, who is responsible for new and used sales at Daf dealership Lex Commercials Wrexham, supports this view. "It could well be the case that some hauliers will start looking for Iwo-year-old Euro-3 trucks once they can no longer buy new ones at Euro-3," he says.

And George Alexander, chief commercial vehicle editor at Glass's Guide, points out: "While February was slow, there has recently been a marked increase in the level of confidence expressed by dealers. Those that have sold a few chassis say that things are looking up, and that their expectations for a profitable first half have risen. Unfortunately, however, the variety and quality of late-year tractor units coming onto the market is disappointing for both trade and retail buyers who are keen to acquire the best. Operators appear to be hanging on to them while they figure out what they are going to do about Euro-4.

"Disposal decisions will need to be made shortly, and this could well provide the trade with greater choice," Alexander concludes."On the other hand, fleets may decide to delay making any decision, and simply run their Euro-3 vehicles into the ground."


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