1F2 scheme wins in grim market
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Iveco Ford's IF2 approved used trucks scheme is now almost 12 months old, and director, used vehicles. John Pettitt reckons it's proving to be a success. That's despite some of the grimmest trading conditions in the used tractor unit market that dealers can remember, with some manufacturers— including Iveco Ford—faced with substantial buyback liabilities.
"We sold 15 EuroTech tractor units under the IF2 banner last month, which is OK, but a bit slow." says Pettitt. "But we also stopped another 15 from coming back by persuading the operators concerned to extend their contract agreements." Of the 15 disposed of, 10 were retailed under operating leases, while the rest were sold to traders, fetching prices between CAP good and CAP clean. "Of the 10 retailed, six were 340hp models. We've got 15 more at 340hp going out on 12-month rental agreements, and a further 13 going to one customer, which suggests that the market for EuroTechs with that power output is quite strong," he says.
Some Iveco Ford dealers have suggested to Commercial Motor that IF2 trucks are simply too expensive. "But you'll always get people making comments like that," Pettitt says. "Dealers fall into two categories—those who are good at used trucks, and those who aren't," he says. "Most dealers don't have the necessary expertise, so we provide them with a package.
"They get less margin than they might do theo retically if they went out into the market and bought in vehicles themselves, but in return they get the comfort that they're vehicles sourced from us. That said, one of our dealers who is particularly good at used trucks recently took two from us, and paid CAP average to CAP clean for them."
IF2 tractors have to pass a 140-point inspection and are sold with a 12-month drivetrain warranty. They're three years old on average, and condition rather than mileage determines which ones are admitted to the programme.
As well as its own used trucks site at Middlewich in Cheshire, Ivaco Ford also has an outlet in Guildford run in conjunction with the local dealer. A similar arrangement will start in Glasgow in August,