Tis the season to be jolly... or maybe not
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For used trucks dealers who have struggled to bring in good retailable stock, they will reflect, over the turkey, mince pies and sherry, on an opportunity lost
Words: Laurie Dealer THIS HAS been the year when used dealers' truck procurement contacts were put to the test. For those who've been successful sourcing viable stock to meet demand, the job was rewarding; for those who haven't, it was tough.
Registrations of new trucks have struggled throughout 2010 (expected to total 27000 registrations over 6 tonnes), driven by price hikes for new trucks by manufacturers in the midst of a recession and banks unwilling to lend.
This will continue into 2011, and open the door for manufacturer's finance arms to fill the funding void. New truck sales in 2008 now appear hedonistic and should help the used trade tick over in the short term. For the long term, used truck dealers have to diversify their operations; sales alone will not pay the mortgage.
Laurie Dealer has seen independents move into rental and leasing, franchises spread the risk with even more franchises, and significant consolidation by some of the largest dealerships in the country. Dealers should take note. •