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Adams Morey kickstarts its used truck business
Page 68
Page 69
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South coast Daf dealership Adams Morey is renewing its attack on the used market after relocating its van business. Steve Banner reports.
South ampton Daf dealer Adams Morey is redoubling its eflOrts in the second-hand truck market now that it has more room at its Redbridge site. The dealer recently moved its LDV franchise to separate premises down the road at Millbrook.
-We didn't have any used stock at Redbridge previously because we didn't have the space," says MD Steve Mercer.
Having a used presence there is already helping to boost sales, he explains, because the dealership is close to what must be one of the busiest roundabouts for commercial vehicles in the entire country.
-A lot of people can see what we have on displays° the number of leads we receive is unbelievable," he explains. "Our stock is on our new website as well [www. adantsmorey.coml, so we get inquiries from all over the country. We can-y 20 to 25 used trucks at any one time, although we don't keep them all at Redbridge, "Typically, we're talking about three-year-old vehicles, although we have people on our books looking for newer equipment. We sell a mix of trucks, but there's a strong bias towards tractor units because of where we are -close to the docks, which generate a lot of container work. We're talking about 450hp-plus 6x2s with quality cabs.
"As far as rigids are concerned, we much prefer customers to come to us and tell us what they want:then we'll go and find it. We're not averse to stocking them, but with a rigid the market tends tube narrowed down dramatically depending on its specification and body."
Plenty of buyers
Demand for second-hand trucks is very buoyant at present, Mercer reports, but it's still difficult to get late-registered. good quality stock.
"We generate some through part-exchanges and some through our various contacts in the industry." he says.
"On a recent auction visit we saw premium 4x2 and 6x2 tractor units selling at above top book. That was more than we were prepared to pay although prices have increased, our margin hasn't changedand lean only think that many of the bidders were end users. I really can't imagine that those units were going into the trade."
Hauliers hanging onto existing Euro-3 vehicles with itnalogue tachographs I ecause they are wary of digitachs and Euro-4 (and the front-end price increase associated with the tighter • emission limit) have helped create the stock shortage.
Other operators eager to buy late-plate Euro-3 trucks rather than new Euro4 for much the same reasons have inevitably contributed to the famine.
-Some firms have decided to run both SCR and EGR seed vehicles for 12 months to see which are the best performers before they make their purchasing decisions, and to hang onto their existing trucks during the trial," says Mercer.
The shortage of good used stock is likely to ease only when new truck sales start to pick up again -and Mercer hopes to see just such an upsurge by the summer of 2007.
"Despite all the fears about EGR and SCR, you can't run old metal forever because it becomes uneconomic to do so,he points out."Remember too that drivers don't want to drive old trucks. They like decent kit, and they've got every reason to expect it, given the amount of time they spend at the wheel. Plus, they can he a tickle bunch.
"Going back to where we get our stock from, we're willing to bid on fleets of trucks. We're starting to establish links in the export market-we're in discussions with an agent in the Far East -so what we don't retail we can send overseas,he says.
"Having an overseas connection also makes things simpler when it comes to disposing of some of our older part-exchanges. We take day-cab tractors back off some of our fleet customers, and it's easier to find a home for them abroad than in the UK." Mercer adds. "Being near to the docks obviously makes exporting easier, so for once we can say geography works in or favour.
"Clearly some overseas markets are imposing limits On the age of trucks that can he imported, and I think those restrictions will increase. But some countries that were once war-torn, but have now entered into more peaceful times— or that are less developed — will take pretty much anything.
Exports for breaking Group sales director Colin Harvey says there is a considerable export market for used parts, so the company is sending out vehicles that will he broken up when they arrive. Some of the agents we're talking to want only damaged trucks,and not just for the bits," he adds. "The labour rates in their countries are so low that it's economic for them to repair them." In Britain these vehicles would he written oft Adams Morey also intends to expand its used van business. LDV shares the Om Millhrook site with a Fiat light commercial franchise, and the two-acre location offers plenty of space to display used stock.
Add vans and trucks together and the 05m-turnover, sevenbranch company (it has outlets in Salisbury and on the Isle ofWight as well as three in Southampton) currently sells .300 used vehicles a year, compared with 1,500 new. "We've taken on Fiat vans at Portsmouth and Bournemouth too," Mercer concludes."But we're still heavily committed to LDV and Daf." •