AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

Summer still sizzles in the van market Business in the

17th June 2004, Page 70
17th June 2004
Page 70
Page 70, 17th June 2004 — Summer still sizzles in the van market Business in the
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

used van sector has been brisk this year and Glass's Information Services believes there's plenty of scope for dealers to

make some money despite the summer holidays. The summer slowdown in the used van market is starting to kick in, with dealers not expecting business to pick up until the holiday season's over. , The summer slowdown in the used van market is starting to kick in, with dealers not expecting business to pick up until the holiday season's over. , The summer slowdown in the used van market is starting to kick in, with dealers not expecting business to pick up until the holiday season's over. ,

The sector has enjoyed some strong demand in the first part of the year and George Alexander, chief editor of commercial vehicles, says the market is still doing well when good quality stock is available. There's no shortage of buyers for good quality car-derived-vans from Peugeot,Ford and Vauxhall, but Alexander suggests a little caution is needed "should There's no shortage of buyers for good quality car-derived-vans from Peugeot,Ford and Vauxhall, but Alexander suggests a little caution is needed "should There's no shortage of buyers for good quality car-derived-vans from Peugeot,Ford and Vauxhall, but Alexander suggests a little caution is needed "should volume reach a criti cal state or where examples offered fail cal state or where examples offered fail to be of acceptable

standard". A shortage

of top-quality Citroen Berlingos and Peugeot Partners ensures firm prices, with similar good news for Renault's Kangoo. But again prices are expected to dip if the number on offer increases "Ford's Connect and VW's Caddy perform best on the open market with low volumes for these quality products ensuring consistently high prices," says Alexander.

The best examples of smaller panel vans continue to sell easily but where volume and weight are essential to customer needs larger panel vans will shine. "Clean examples from many marques with high horsepower and maximum capacity, presented with warranted miles and full service history, effortlessly make strong money [up to expected values1" he adds. At the bigger end of the panel van scale, the Mercedes-Benz Vario is still highly prized; other high-cube examples from Ford,Fiat and Iveco will also perform well if presented in ready-to-sell condition. • Information Warranty

The current buoyancy in the used market could be undermined by vendors looking for excessively high prices, according to the experts at Glass's Information Services. They warn that traders trying to increase margins might scare off potential customers.

George Alexander, chief editor of commercial vehicles, says that when times are good vendors can become too ambitious when it comes to setting reserves for exfleet vehicles: "Problems will inevitably arise if the cost of nice late-year stock reaches the point when, after reconditioning cost and a sensible margin of profit is added in, dealers would need to retail these vehicles at close to the discounted cost of a new example."

Many dealers are commenting on expensive price tags. Alexander says the high prices are not yet-curtailing business but feels caution is needed: "It is in everyone's interest that we maintain a sensible gap between discounted new cost and late-year retail price, as the consequence for vendors of setting reserves too highly will be to choke the marketplace."


comments powered by Disqus