Vehicle values are predicted to rise as business starts to pick up, according to those in the used trade sector.
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Words: Steve Banner / Main image: Tom Cunningham Used truck prices will increase by at least 10% this year as demand rises, predicts Lee Smith, a director of West Thurrock, Essex, independent dealership Hanbury Riverside.
"They're improving all the time," he adds.
"Prices are holding steady, and, if anything, they're creeping up a bit," says Jamie McDonald, who runs Besthorpe, Norfolk-based independent dealership RIM Commercials.
"We've got used to them being low," he adds. "Now they're coming back to about where they should be."
Smith continues: "We're finding that business is getting better and better, and the number of enquiries we're receiving is increasing. New trucks have become more expensive, and that makes late-registered used trucks look more affordable. If you're asked to pay £85,000 for a new one, then £40,000 for a late-plate model looks really cheap."
Upward curve
Phil Holmes, used sales manager at Scania dealership Keltruck, agrees that sales are on an upward curve. "That's been the case since last July," he says. "December was phenomenal, so was January, and February is looking good. too."
He continues: -As far as many customers are concerned, it's a case of needs must. If their existing trucks are no longer up to the job, they've got no choice but to change them if they want to stay in the game."
Rising demand means that operators have got to be more realistic about the prices they are prepared to pay, argues Holmes. "Many of them still think that there is a massive pile of unsold used trucks out there. But that's no longer the case. There's a severe shortage of late-registered models in particular."
Ridiculous offers
Holmes adds: "Consequently, there's no point in making ridiculous offers for vehicles and expecting such offers to be taken seriously. If you're not willing to pay decent money, you won't get served."
Holmes, similar to a number of dealers across the UK, would love to find an unsold pile of second-hand trucks, because one of his biggest problems is locating retailable stock to replace vehicles as they are sold.
"We haven't got any 26-tonners, one eightwheeler, nothing newer at 18 tonnes than one on an '03-plate, and our stock of tractor units is shrinking fast," he says.
"Decent tractor units are not easy to obtain, and they don't come cheap." McDonald says.
"There's a shortage of used vehicles, but luckily, we have got a bit of ex-contract stuff coming from Renault over the next few months," says Adrian Godber, used truck specialist at Nottingham Renault dealership R H Commercial Vehicles. Another major question is whether or not operators can secure the finance they may require to buy what they are looking for.
"While I get the impression that obtaining funding can be difficult. I've put one or two proposals to finance companies on behalf of customers and they've been accepted," reveals McDonald.
"What's more, I'm getting fundcrs asking me if I've got any business for them. One's been calling me regularly since Christmas." N