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Don't put all your e s in one heavy basket

19th October 2006
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Page 70, 19th October 2006 — Don't put all your e s in one heavy basket
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Which of the following most accurately describes the problem?

Dealers who operate in a number of sectors are well placed to cope with the shortage of late-year low-mileage Droducts — and the used

van sector seems unaffected. Steve Banner reports. dealers active in two or three different sectors of the market, including light

commercials and exports, may be best-placed to weather the severe shortage of stocks of late-year low-mileage trucks that has built up in recent weeks. The shortage has arisen

because operators wary of digital tachographs and nervous of making the wrong Euro-4 choice are hanging on to late-plate Euro-3 trucks equipped with analogue tachographsand it is precisely these vehicles that many used buyers want.

No effect on vans

The second-hand an market is unaffected by this debate, of course, and remains buoyant. "Used van dealers experienced only a minimal slowdown over the summer months, and demand for models such as Vauxhall's Astravan and late-plate and wellspewed Citroen Berlingos and Peugeot Partners looks set to remain strong until the end of the year," says George Alexander, chief commercial vehicle editor at Glass's Guide. "Confidence in the used panel

van sector is high,with the feelgood factor encouraging the more entrepreneurial dealers to invest in, and grow, their businesses,he adds. 'To satisfy the appetite for late-year vehicles the best lots are pounced on quickly at auction and it's this prime stock that generates good margins for the dealer. "The over-supply of 3.5-tonne vans remains an issue, but clean, straight Sprinter 311CD1s, Volkswagen LT35s, and Ford Transits continue to attract firm bids," Alexander reports. "Tipper and dropside prices are holding steady due to the healthy demand, and good money is being paid for

longer-bodied boxes and Lutons on reputable chassis."

Paul Banks, sales manager at Manchester Mercedes-Benz dealershipTruckWorld, confirms that light CVs are generating plenty of interest. -We're now seeing the first used examples of the current-shape Vito come onto the market in numbers, and they're proving really popular," he says, "Sprinter prices -and here I'm

thinking about late-registered examples of the previous model — are holding firm too because there's such a healthy demand."

Sprinters in demand

Nor is he having too much difficulty moving long-wheelbase, high-roof Sprinters.They are the sort of high-capacity vans that appeal to parcels companies when they are new. but tend to be rejected by the self-employed tradesmen who buy second-hand CVs because they are too big to fit into a domestic garage.

"We find we're able to sell them to, for example. couriers who are just starting out in business and cannot really justify buying a new vehicle," says Banks. Customers are particularly keen on Dualiners,he adds —Vitos and Sprinters with a second row of seats and a cargo compartment at the rear.

"A self-employed tradesman can use one as a van during the week and to take his family out at the weekend," he points out. Condition is vitally important to anybody who is buying a second-hand light CV, Banks adds: number (Araks recorded is less significant because customers are aware that vans are quite capable of clocking up a phenomenal mileage these

days." Of course they may give trouble if they have not been serviced regularly. "As a consequence a full service history is important, although the buyer will not necessarily expect all the work to have been done by a franchised dealer," he says.

Chris Hart, MD of Blackrod, Bolton-based independent dealership Trucks 2 Go, reports: -We're finding that there's a shortage of clean, late, used Sprinters. Operators are hanging onto them because they're waiting for the new models they've ordered to arrive, and when the used ones come onto the market they fetch extremely good prices."

Sending trucks abroad

Hart retails second-hand trucks too, and exports vehicles to Cyprus, Russia, and the Ukraine.

"With the way things are I'm glad I haven't got all my eggs in one basket," he remarks. 'Ihat said, I've got quite a few retailable trucks coming into stock at present; stuff! underwrote back in May and June."

He explains that they are only turning up now because of the length of time the existing owners have had to wait for their new vehicles to be delivered.


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