T he popping of champagne corks and the hearty congratulations that
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accompany the signing of a new transport contract can be halted suddenly by the realisation that the company might not have enough trucks to handle it. That may not be a problem when the waiting list for new vehicles is a couple of weeks— but when they stretch into months and the contract start date gets closer and closer the fleet manager can be forgiven for breaking out in a sweat. Will the trucks arrive before the first deliveries of this valuable new customer's goods have to be made?
One way around this problem is to buy second-hand. The vehicles are available immediately, and with lots of late-registered, well-maintained three-year-old used tractive units pouring into dealerships as a consequence of buy-back agreements, it's a buyer's market.
"At present many manufacturers are quoting a minimum to to 12 weeks delivery on new chassis, but we can offer two-year-old tractive units still covered by the truck maker's repair and maintenance contract right now," says Lee Smith, general manager of Essex independent used truck dealership Hanbury Riverside.
As well as enjoying instant availability, the price savings are substantial compared with purchasing new, he adds: "You can buy three second-hand trucks for what you'd pay for two new ones. Trucks depreciate very rapidly during the two years after first registration, remember, but if you buy used somebody has already suffered the depreciation pain on your behalf."
Independent dealer Malcolm Harrison recently sold a well-kept three-year-old Scania R124 400 6x2 mid-lift tractive unit for less than 130,000. A few weeks back Hanbury Riverside was disposing of FT-J.12 420 02 tractive units—i996, on P-plates with Globetrotter CID cabs—for just over £20,000 apiece. They were left-hand drive, says Smith, which made them ideal for any fleet engaged primarily in Continental work.
Savings
Cost-conscious operators with their own workshops can make even greater savings if they're willing to buy trucks that are basically sound but need one or two jobs doing to them, like new clutches or brake linings.
Harold Fox & Sons has made a point of buying three to four-year-old Daf 85 tractive units, both at auction and from franchised dealers. Partner Paul Fox calculates that the Manea, Cambridgeshire-based firm saved £5,000 on one of its purchases because it bought it "as seen" and did the rectification work itself, rather than asking the dealer to put it through his own workshops.
"We're buying second-hand Daf 85s for around Do,000. which is roughly one-fifth of the price new," says Fox.
Trucks are better built and more durable than they were, he points out, which means that a used truck that's been reasonably well looked after can be a good buy. "We're not talking about beaten-up rubbish that breaks down every time it goes out of the yard," he remarks.
One big operator that buys almost exclusively second-hand is Thompson Transport of Moretonhampstead in Devon. It runs 64 trucks, and the line-up is dominated by Renault Manager G34oti tractive units sourced from dealership Renault Bristol. Typically they are three to four years old and with 400,000km on the clock when operations manager Geoff Moore acquires them, and most have come off contract with one of the blue-chip fleets. "They cost us about onethird the price of a new one. We run them into the ground and break them for the spares once they've reached the ends of their working lives," he explains.
Moore has acquired five new Renault Premium Gus in the past two years, however, and his reason for doing so highlights one of the problems with buying used. Although it's always possible to have chassis altered and axles added, there's less scope for the customer to tailor the vehicle to his precise requirements.
Moore needs some 6x2s so that he can operate at higher gross weights; and 6x2 Managers are few and far between. Adding an axle might be a possibility, but it's a moot point whether the economics of doing so would make sense.
If you buy a three or four-year-old truck you won't qualify for a Reduced Pollution Certificate and the related saving on Vehicle Excise Duty. You may also find that although the fact you're dealing with the previous generation of truck technology might make it easier for you to maintain the wagon in your own workshop, you won't enjoy the improved fuel consumption offered by the latest models.
"Fuel is a concern." agrees Geoff Moore. "Where we're getting 9-iompg out of a Premium, we may only be getting 7-8mpg out of a Manager."
That said, one container haulier who has bought ii used 38oltp Volvo F1112 tractive units from Hanbury Riverside is getting 8.99.1mpg out of them, says Lee Smith. "We had a brand-new Daf 85CF on trial, and we found that it was thirstier than our older 855 to the tune of half a mile a gallon," adds Paul Fox. Of course it might have started to do better once the engine and gearbox had bedded in.
Problems
Investing in large numbers of second-hand trucks of a wholly unfamiliar make could cause problems if you're used to doing your own servicing. Thompson Transport's fitters have got to know Managers inside out, however, and Moore is confident they'll glean an equally intimate knowledge of Premiums.
Fleet operators unfamiliar with the used market and nervous of ending up with a pup could always consider buying an approved used truck from a franchised dealership, says Chris Sansome, used truck business develop
ment manager at Volvo.
All the trucks marketed under Volvo's Selected scheme are under six years old, have covered less than 8cio,c)ookm, and go through a thorough workshop safety check and a full service before they leave the dealer's premises, says Sansome. They're protected by a factory-backed warranty of three or six months, depending on the age of the vehicle. Volvo has its own used truck web site to show what's available throughout the country.
Renault VI's Choices used vehicle programme features a "gilt-edged" Elite scheme that includes a tune-up for the engine, a cab and chassis repaint and a 12-month warranty. But Lee Smith stresses that you shouldn't have too many fears if you buy from a rep utable independent dealer with an established track record. "We can provide customers with a three to six-month driveline warranty, and can also offer a replacement vehicle in the event of a breakdown," he says. "There's nothing wrong with buying from a franchised dealer, but you might find that his trucks are expensive because the buy-back price agreed with the first operator was too optimistic, and he's got to try to get his money back.
"If I were a fleet manager buying used. I'd be looking for a truck that's been in service with a well-known and well-regarded fleet," he adds. "I'd also want to see a full service history."
Three to six months should be enough to reveal any faults on a nearly new vehide. If there is a dispute over a problem, the purchasing clout fleets enjoy can always be brought to bear—and the finance company should brought in too if the vehicle is on finance.
Although well-known trader Robi Reynolds has often supplied used trucks fleet operators who are desperate for vehicl to start a contract, he points out that mar facturers and dealers will increasingly hi bridge any gap by offering rental vehicles trucks from their used stocks until the n ones arrive. That way they don't lose the n chassis business. "Volvo is in a particula good position to do this, because it ow BRS," he points out.
Tippers
That's fine with tractive units—"Most of manufacturers have got hundreds of supermarket tractors on their hands, af all," Reynolds points out—but it's more c challenge if you need, say, half-a-dozen eig wheeler tippers or 17-tonne dropsic equipped with grabs.
That's where traders like Reynolds c score, because they have the contacts and 1 ability to track down the particular vehic that suit a customer's needs.
Paul Fox puts his finger on one fundaini tal reason for the appeal of used vehicles. " simple economics," he says. "If the tax fuel fell we'd have new trucks in our )f every year. But with the way things are have to save money wherever we can, so buy second-hand instead."
• For thousands of second-hand truck b gains, see CMTruckmart, page 49.