Damage limitation in Ulster
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by Brian Weatherley • Did the recession ever reach Northern Ireland? For Ulster's new and used-truck dealers the economic impact of the past two years has been far less damaging than in the rest of the UK.
Ulster simply didn't get the big highs and lows, says Nigel Birkmyre, sales director for Ballyclare-based Volvo main dealer Dennison Commercials: "We plod along at a steady pace. During the recession we've seen a fair few of the cowboys knocked out of the business which has left a more constant share for the guys who are still out there."
Frank Walsh, joint managing director of leading independent dealer J&F Trucks of Newtonabbey agrees; "When England was booming, we were ticking over. When England was down, we were ticking over.We were never really hit by it."
Last year tractors accounted for just under 32% of all UK registrations above 3.5 tonnes; in Northern Ireland the figure was more than 34% with 344 attics sold. The majority of buyers are the classic small hauliers: large-volume orders are rare, says Birkmyre. Over here every order counts—six is a big fleet deal."
Irish operators, north or south, are high-power buyers; the FH-420 artic is proving a strong seller for Dennison.
"In the past we've been taking a truck for every one we've sold. We retail most of the used stock
and trade a bit of it," says Birkmyre. In 1989 Dennison sold 275 used vehicles and Birkmyre is hoping to get close to that figure in '94.
Last year used trucks proved an important revenue source for Nlercedes-Benz dealer Agnew Commercials, says general sales manager Billy Dougan: "Our new vehicle operation has become almost as important as our new truck sales."
Ulster's main dealer for the German marque set up its used vehicle department—Agnew Truckmart—three years ago: "It's done very well," says Dougan.
Irish Sea
By far the largest proportion of Agnew's stock-60 to 70%, says Dougan—is brought over the Irish Sea, in line with the high percentage of used trucks that come from Britain and are subsequently "re-registered" in Northern Ireland.
If the numbers are up, so too is the quality of used vehicles
coming out of Ulster. "In the past Northern Irish vehicles have had a reputation for being badly maintained and abused," admits Dougan. "A customer sees that it's got Northern Ireland plates and knocks off L2-3,000. Up to a point that still exists—but not to the same extent as it was."
The advent of tougher local vehicle testing standards has helped raise that quality, reckons Dougan. "Ten years ago there were lot of ropey trucks. But because testing has tightened up operators can't afford to ignore their maintenance. The rumour may have lingered on— but the fact is retail values have been getting better."
Although Agnew sells some of its stock through auctions the majority is sold to end-user hauliers. "Those vehicles we retail will also be well-prepared." says Dougan. As the British market has been starved of good quality late models it's had a knock-on effect in the province.
"It'll take another 12 months minimum for the market to really pick up because there's no big flow of trucks coming in so people aren't changing," says J&F's Frank Walsh.
UK sales
As a result Irish dealers have had to be prepared to offer more in UK sales, as fellow joint managing director John Walsh explains: "The Irish dealers are prepared to pay more than the English truck man—simply because if he wants it he'll have to pay for it."
J&F sells about 300 used vehicles a year and Frank Walsh remains pragmatic about the difference a recession has on the company's business: "I'll do the same number—but with less profit." While most independent dealers in the rest of the UK retail the bulk of their stock, J&F sells mainly to the trade— usually smaller independents who then sell on to hauliers. It also works closely with the large franchised dealers.
"We want to avoid the hassle of dealing with the end user, that's why we're nearly always selling to the trade," says Frank Walsh. 'That can often mean buying lorries in England taking them back to Ulster only to sell them to a dealer back in England."
Walsh is not surprised that so many franchised dealers in the UK remain wary of dealing with used vehicles. "They're not in the risk business—I am. The strength of the independent is that he'll take the risk."