AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

Buyers playing safe in uncertain times

24th April 2003, Page 51
24th April 2003
Page 51
Page 51, 24th April 2003 — Buyers playing safe in uncertain times
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

The used truck trade is marking time, says independent dealer Martin Rhodes. "There's business about, but not as much as I thought there would be," he observes.

"What's more, a lot of people are finding that it's being generated by existing contacts," he continues. "There aren't that many fresh buyers coming along at present.

"I'm not sure whether it's the war in Iraq that's affecting confidence, but something is. You can feel that things aren't exactly right."

The disposal policies being pursued by certain manufacturers aren't helping, he adds. "They seem to be pursuing a two-tier approach," he says. "There's the price main dealers are expected to sell ex-contract trucks at, and the prices actually being realised by the trucks that manufacturers are dumping into the auctions.

"They've depressed values quite considerably over the past six months, and I don't think the guides have caught up yet. But dealers are still being told by their manufacturers that ex-contract vehicles must make guide retail, no matter what."

The price fetched by one particular make and model of tractor popular with fleets has fallen by £1,000a-month since the end of last year, as a result of that manufacturer's disposal programme, he claims.

"But having said all that, tractors with big cabs and big engines will still always sell, and 17 to 1B-tonners remain in demand," adds Rhodes.

• independent dealer Robert Reynolds agrees with Rhodes that the trading climate isn't easy.

"Rising National Insurance contri

butions and the impact of the war are the excuses people tend to give, but the truth is that it's the general economic climate," he says.

"We're now seeing a slowdown in retail sales as well as in manufacturing, and it has to be said that an awful lot of hauliers have become disillusioned with the transport business. Many of them have had enough, and want out.

"There's business about, and the Saturday auctions are busy, but you have to be quick and slick on your feet to get it."


comments powered by Disqus