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The noose tightens

25th March 2004, Page 69
25th March 2004
Page 69
Page 69, 25th March 2004 — The noose tightens
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Which of the following most accurately describes the problem?

As manufacturers take greater control over their returning models, independent dealers are finding it harder to get fresh stock

As manufacturers take more control of their used vehicle fleets, it is having a significant effect on what independent dealers can place on their own forecourts. Non-affiliated dealerships have found it difficult to source trucks across the board and are concentrating on the decent stock of marques readily available.

Mercedes-Benz Signature Used Commercials recently added vans to its contract-hire and buy-back portfolio, MAN Diesel has stepped up management on its returning second-hand vehicles as well as returning ERFs, and Foden has increased its turnover in the used market to 180 last year, three times more than 2002. The latter two probably make little impactl the independent dealer, but Scania and Volvo products are also proving rare. Iveco.Daf and Renault Trucks are readily available, howevei It's no secret that in recent years boosting new sales figures meant manufacturers chasir major fleet business with attractive 'buy-back deals. Short-term two and three-year high cos buy-backs are diminishing, with manufacture committing first-time end users to longer deal helping reduce, drip feed or delay recycling, ai reducing the overall turnover of vehicles.

But as Neil Chapman, MD of Chapman Commercials, based atTrafford Park, Manch( ter, points out, fewer vehicles create a dealer's market with good margins. •


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