The used truck market expects an increase in demand for Late-year stock as prices for new stock are raised.
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Words: Kevin Swallow / Images: Tom Cunningham
Demand for Late-year used product is likely to soar as truck manufacturers ramp up their prices because of the knock-on effect of the pound's continuing struggle against the euro, A lopsided exchange rate and higher costs of raw materials mean that British-based operators can expect higher purchase prices in 2010, argues lveco Trucks UK managing director Henk van Leuven.
Exactly how much, though, is open to debate, but Mercedes-Benz managing director Ian Jones suggests the price of a vehicle is now 23% more expensive in real terms.
The used trade is already assessing the potential impact this sort of price hike could have; and it should lead to more dealers buying to stock rather than to order with a buyer already in mind.
Firm prices
Chris Hart, managing director of independent truck dealer Trucks2Go, which is based outside Bolton, has just bought a batch of late-year Mercedes-Benz Actros tractor units. "Late-year trucks are doing well because manufacturers are putting up their prices," he reveals.
With sales having stalled in most sectors except niche markets, pushing up prices on new stock will be key to stimulating used truck sales over the next 12 months.
Charlie Wright, owner of Doncaster-based ProTruck Auctions, has enjoyed a recent run of five-year-old decommissioned tipper/grab trucks as well as exporting 1998 to 2003 tippers.
"Price hikes on new chassis should drive up demand on used trucks, and there will be a shortage of one-to-twoyear-old stock to meet this demand," he says. "Trucks going through today could look like bargains in six months' time; [new chassis price hikes] are going to be key to 2010."
GeorgeAlexander, editor of Glass's Guide to Commercial Vehicles, has already noticed that a short supply of the "best trucks, tippers and tractor units resulted in firm prices being held during the close of 2009".
He reveals: "At auction. it was encouraging to note that, when chassis in exemplary condition came under the hammer, big money was consistently paid.
"The best stock is being bought to order and secured at all costs. But where customers are desperate to get on with the job, dealers are often surprised by just how much retail buyers are prepared to pay.
"It would be worth prospective used buyers checking with a franchised dealer what price a comparable new chassis could be put on the road at," Alexander adds. •