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Great expectations
Page 52
Page 53
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Despite some worrying financial signs, used truck dealers are predicting that sales in 2008 will match last year's figures. Steve Banner reports.
Dealers are optimistic that this year's used truck market will be as healthy is last year's, despite a clutch of iegative economic indicators.
"A lot of people are gloomy at lresent but I remain confident," mys Mike Curtis, used truck sales nanager at Daf dealership Watts. 'I don't think it will be an easy rear but! don't believe it will be a lisaster either. Prices are firm and f we can get hold of enough /chides we should do at least as veil as we did in 2007.
"Fortunately we've been able o buy a lot of nice clean used nicks direct from operators," he adds."We regularly see them advertised privately in Commercial Motor, and if we spot one we like we make the owner an offer."
Continuing long lead times for new vehicles will help keep demand for late-registered second-hand models buoyant, according to Lee Smith, a director of West Thurrock,Essex-based independent dealership Han bury Riverside: "Nobody wants to have to hang around for 18 months before they take delivery.
"Admittedly there's a lot of pessimism about, and the high price of diesel certainly isn't helping, but more and more hauliers seem to be taking the view that expensive fuel is something they've just got to get used to — even though they don't like it."
Pre-Xmas fears "Back before Christmas a lot of customers were getting really worried about diesel going up," says Anthony Wright of independent dealership European Vehicle Sales, based near Doncaster. "Now nobody is mentioning it."
But Andy Mackay, used sales specialist at Manchester Daf dealership Chatfields, fears the high price of fuel will drive some operators out of business: "IL's really biting and if something isn't done soon it's going to become a massive problem for the industry.
"I can see some really big fleets going under. If you're running 300 trucks then a 5% increase in the price of diesel is going to knock a big lump off your bottom line if you can't pass it on."
But he remains positive about the prospects for the year ahead: "While a lot of dealers are facing a stock shortage we've got plenty of late-plate vehicles available.
"In fact I hung on to around £400,000 worth of trucks over Christmas — something I wouldn't usually do in anticipation of the demand driven by long lead times on new chassis."
Availability of late-registered trucks is likely to become more problematic from June/July onwards."By that time 04 and 55plated vehicles will be deemed to be too old to qualify," says Mackay. He clearly doubts whether there will be enough newer trucks around to take their place.
However, Nigel Sharp, who is in charge of the Barnsley used truck operation at Daf dealership F&G Commercials, is not quite as optimistic about the market's prospects as some of his industry colleagues: "I'm sitting on the fence at present. I went to a couple of auctions recently and found that late-plate stuff wasn't selling, possibly because the vendors had set the reserve a bit too high.
"By contrast there was plenty of demand for 2003-registered vehicles from Eastern European buyers, and for older stuff too." Those older trucks might be destined for employment as yard shunters rather than for use on the public highway."We've been seeing S-plated tractor units that would normally sell for £2,500£3,000 attracting offers of £4,000£4,400." Sharp reports.
On the whole, though, operators are thinking big. Smith says: "At present the Volvo 480 Globetrotter XL seems to be a popular choice — much more so than the 460.
"Hauliers like that 13-litre engine," he adds."It's good on fuel, and there's enough room on the chassis for big diesel tanks and a power take-oft It's a package that's right for most types of work."
Wright agrees:"Generally our customers want a clean 6x2 tractor unit that's no more than five years old with a big, high roof, cab and a big engine — and they'll typically pay around £24,000€25,000 for it. We're talking about an FH Globetrotter or similar."
Late-plate trucks Desirable late-plate trucks get snapped up quickly, says Barry Browning, used commercial vehicle sales manager at Andover, Hants-based Mercedes-Benz dealership Pentagon. "We recently obtained half a dozen 06-registered 2544LS highroof sleeper tractor units that had done around 140,000km each and sold five of them almost immediately." he says.
Another issue is that the long lead times on new vehicles are continuing to prompt some hauliers to ask for extensions on leases on their existing trucks, exacerbating the shortage of desirable used chassis.
-Recently I agreed to take six Fodens due to come off lease only to be told the next day that the lessee was going to hang on to three of them," Sharp says. •