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Strengths and weaknesses
Page 68
Page 69
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Used vehicles sales are still strong but some sectors are lagging behind. Glass's Information Services rounds up the trends.
The used rigid truck market is at odds with itself from top to bottom. If you've got an 18-loaner on the forecourt the chances are you'll have to lower your price to get it shifted. George Alexander, chief editor of commercial vehicles at Glass's Information Services, reports that traders have seen prices struggle due to a lack of retail demand — and they fear that situation could get worse.
Compare this situation to multi-axle rigjds where it's a case of buy first, ask questions later. "Little preference is given to the marque of any used heavy tipper up for grabs, so long as the condition of any chassis has plenty of life left in it," says Alexander.
Some trade buyers will even take off the body and tipping gear, as long as the chassis is in decent condition.This has led to higher price tags for tipping chassis requiring a new body. Alexander says this practice is "viable if the end result is prime retail stock".
"The tipper market is still benefiting from the buoyancy of both the construction industry and those smaller businesses associated with it," he adds. "Though following recent rises in interest rates,concerns that this situation may weaken could emerge."
While the fighter end of the truck market remains slow, prices have held reasonably firm, as there is no surplus of boxes and curtainsiders — a sudden flood of stock can depress prices. Some traders have a waiting list for the right spec 7.5-tonners, and demand for 11 and 13-tonne chassis vehicles is steady, although volumes are low.Tractor units continue to do good business,Alexander reports,with"dealers, traders and exporters all playing their part in keeping supply and demand in balance".
The original car-derived vans are getting a hard time from the new generation of purpose-built vans and prices are under "considerable downward pressure" as customers shy away.
"There's no shortage of the dealer discounts on new vans that have affected values for many late-year models," says Alexander."None more so than the Berlingo and Partner, where prices in the open market, even for HDi models, have disappointed."
But it's not all doom and gloom for Citroen and Peugeot. Good quality B erlingos/Partners, and Renault Kangoos with PAS, will still take bids to Guide trade. Customers are on the look-out for warranted mileage of less than 50,000 and side-loading doors. This, says Alexander, will ensure that these vans sell first time and often for a premium price.
"Over the past months, Scudo,Dispatch and Expert have received firmer market sentiment directed towards the better examples, particularly those boasting HDATD engines and a bench seat," he reports.
"Vauxhall's Vivaro is now appearing innumberS and the effect is more likely to threaten its residual values than lift its standing with buyers.•