• There are now encouraging signs that the recession in
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the used truck market could be coming to an end. Interest rates are starting to decline and people are becoming more and more confident about the future. Used truck dealers have reported that March has brought with it far more enquiries and sales than they have seen for many months.
The section of the used truck market to have benefitted most from the uplift in sales is tippers. For several months there has been little or no movement in tipper sales and we have seen a steady decline in prices: this price decline is now being reversed with tipper prices making a gradual increase. Dealers are already reporting having to pay £2-3,000 more for good quality tippers than they did earlier in the year.
Buying up
Truck dealers who have scented better times ahead are once again dashing about the country buying up tippers at prices that they now consider have bottomed out.
Examples of rising tipper prices were seen at auctions held at ADT at Measham recently. Two E-registered Foden 30-tonne bulk alloy tippers with Cat 300 engines were offered for sale at an earlier auction this month but not sold, having only obtained bids of about £14,500. These two were offered again later and this time attracted bids of £.17,000.
The tippers were entered in the auction by Cowie Interleasing, the vehicle hire and contract company. The reserve on the vehicles was approximately £19,500. Both vehicles were very clean and tidy and who knows what will happen in a market with rising prices — if they had not accepted the bids of £17,000 they may well have got the reserve price at a future sale.
At the same auction on 29 March a good condition ERF E8 24tonne tipper with a Cummins 265 engine and alloy aggregate body was sold for approximately £21,000. The sale price of this G-registered tipper once again highlights the strengthening of the tipper market.
It is also noticeable that in other sectors of the used truck market there has been a marked reduction in the number of late registered, good quality trucks being offered at auctions. This reduction has not yet brought about anything like the same rise in prices that we have witnessed with tippers, but the signs are that prices are starting to harden.
The prices of tractive units were certainly much higher at an auction at ADT Brighouse on 27 March. There were several 1988 Volvo FL10 three-axle tractors offered for sale. The sale of these units was brought about by the recent demise of the John Dee Group; they had initially been bought by a dealer. This turned out to be a shrewd move with prices ranging between £15,250 and £15,950. These made a very handsome profit for the dealer, but still showed good value to operators.
0 by 'The Dealer'