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Deals foNor wheels
Page 46
Page 47
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For those CM readers who are feeling bold enough to buy a new truck despite the economic climate we highlight the latest round of finance deals on offer.
lAinr 11, (11J1c,P Truck demand appears to be so far down the tubes at the moment that manufacturers and independent dealers are bending over backwards to offer shiny deals to turn the showroom browser into a buyer.
The message, as ever, seems to be that despite many banks pulling out of the CV brokerage business, there is still plenty of finance available for the credit-worthy customer. As Stuart Wolstenholme, used truck sales manager at West Pennine's Middleton Manchester branch, said recently ('Buyers are snapping up some bargains: CM 12 March): "I've yet to come across a customer who has had a problem raising finance... Money is as cheap as it has ever been."
And, as you will see in this article, every manufacturer will be doing its best to grab your business. By the same token, if you're a customer, it's also the perfect time to bargain hard. If you are in the market to buy, dealers or manufacturers may be willing to throw in some substantial value added product for free to seal a deal, according to some of the operators we've talked to.
So what are the manufacturers doing to encourage people to open their wallets, despite the fact their credit might have been crunched? Here's what we found out...
Although some of the deals are due to close at the end of the month, there is a good chance they will he renewed or repeated, so ask. It's also worth bearing in mind that it is always the customer that pays for flexible credit — if it says interest free, you can guarantee the charge to cover that is in the ticket price. Having said that, flexible payment options may help your cashflow. • -Twelve months ago residual values were high, so people were confident with finance leases or HP," says marketing director Tony Pain. "Now there is a big swing to operating leases, which offer controlled costs, including maintenance, and the manufacturer underwrites the residuals?'
DAF is prepared to offer payment holidays of three months, with the 24or 36-month terms starting after that, or premiums rising to cover the cost in 21 or 33 months.
"Customers are delaying purchases because they think things will get cheaper." says Pain. "There is a more serious lack of demand than a lack of credit. But people should buy now while there is still stock, because exchange rate changes will make trucks more expensive.
"There are often ways to get around problems and make purchases more tax efficient, so we would suggest operators come and tell us what they need."
Iveco
Iveco dealers are offering 1,000 litres of free fuel with the purchase of any Stralis or, Trakker, which is worth almost £1,000 at current prices.
Iveco and JC Payne are offering special pricing on all new Daily chassis cab models with dropside or Luton bodies and on Eurocargos with a box or curtainsider. A 3.5-tonne Daily dropsider is £16,499 and a 7.5-tonne Eurocargo rigid is £27,999. It is also offering a free Trafficmaster GPS SmartNav — with a complimentary 12-month subscription — in all new Daily vans. All these deals are scheduled to finish on 31 March.
MAN
MAN is not offering any specific deals at the moment, but says that its financial clout remains undiminished, and subject to the usual credit checks, it will continue to provide its usual portfolio of finance deals. "MAN Finance can provide finance on quality used TGAs from just £195 per week," it says. Renault has three levels of deals that apply to Midlum, Premium Distribution, Kerax, Premium Lander. Premium Long Distance and Magnum sales.'Earn now, pay later' requires a 10-20% deposit followed tin°td by a threeto six-month payment holiday. ef 'Low rate' offers interest rates from 0-1.99%, ..r PFIg` 1 ASO depending upon terms. And the 'Maxi service' gives 12 months 0% finance with a free three-year Expandys warranty.
Renault say the deals are due to end on March 31, hut they may he extended, and it has encouraged those who need to buy this year not to delay.
Mercedes-Benz
On Vitos (excluding Sport) and Sprinters. Merc is offering 1% finance over one year, 2% over two and 3% over three years, plus deposit and fees through Charterway. M-B would also like to remind buyers they can offset up to £50,000 in capital expenditure against the 2008-09 tax year.
The Axor X in all its variants can be picked up on full contract hire from Charterway for £315 a week over five years with just one advance payment. And, finally, you can get a 3.5-tonne Canter on finance lease or HP at 1.99% flat rate finance over one to five years.
Volvo
"We work very closely, on a case-by-case basis, to tailor financial solutions for our customers to ensure they get the best possible financial package that suits their requirements," explains Ian Mitchell, Volvo commercial truck director. "We arc very aware of the pressures that our customers are under, but by offering pur clients specific financial solutions and highlighting options for building more efficient operations (ie fuel management, driver training etc) we believe their and, ultimately, our business will be better positioned when the economy recovers.
Isuzu
Isuzu sales director Richard Draycott says the company uses Commercial Vehicle Finance and sister company Artegy to provide its finance deals, and it's "business as usual." We do occasionally offer campaigns, but we prefer to accommodate customers on a one-on-one basis." He adds that operating leases and balloon payments are popular. And more people are opting for contract hire to avoid investment. -The level of activity is increasing, but we can't quantify it," he confesses. "There is demand, but it isn't necessarily translating into sales"
Scania
Scania says it has a number of deals on offer. "We are tailoring deals to meet customers' needs,reveals a spokesman. [these are] structured payment profiles (seasonal payments and/or low initial payments) on both hire purchase and contract hire. These are put together on a deal-by-deal basis, and are dependent upon customer need and credit covenant."
Independents
A number of independent used truck dealers offer finance through a portfolio of providers. Independent new and used truck dealer Kel-Berg, for example, says it has not only cut the price of stock, but can offer no deposit deals, low interest rates, VAT deferrals and flexibility in the length of payback terms. Sales director Michael Addison says: "There are lots of deals available and we can also help customers who are struggling with existing commitments to restructure them. It's not an easy market at the moment, but we do not find there is a lack of credit available — for the right people, we can find the right deal."