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The recession is already being felt in the used truck market, with demand for vehicles falling as the manufacturing sector slashes production and lays off workers, says independent dealer Robert Reynolds, who is closing down his site at Kidderminster • December. He will be joining ent dealer Malcolm Harrison o us believes customer confidence has hit rock-bottom, despite recent cuts in interest rates. "I can't see any reason why there should be an upturn this side of Christmas," he warns.
Hauliers who were looking for used tractors to deliver Christmas goods to the high street have bought them, made their deliveries, and are now . seeking to dispose of them. Reynolds says. "The Whole job is going through a -very difficult period, " he adds. "I'm getting more telephone calls from people hoping to sell vehicles than 1 am from
people wanting to buy them."
Brian McKellar of McKellar Motors reports that the used truck side of his business is breaking even, but it's certainly not generating big profits.
"The market isn't anywhere near what it was 12 to 18 months ago, and I believe we'll see a few used truck dealers going out of business at Christmas or just afterwards," he predicts. "Sales of tractive units in the run-up to Christmas haven't reached the expected volumes; and while it's not true to say that anything pre1990 is scrap, it's difficult to get rid of older stuff."
Earlier this year McKellar acquired a company which specialises in making cab-top extensions and aerodynamic aids. "There's more mileage in that sort of activity at the moment than there is in used truck sales," he explains.
, at "The job's gone right off, and the number of telephone inquiries that we're receiving has halved," says Alec McDade of Mac's Truck Sales. "I do a lot of buying at auction, and I'm seeing a decline in prices. A lot of dealers seem to be offloading stock to keep themselves liquid."
McDade and his colleagues aren't downhearted, however. "All you can I do is get out there, weather the storm, and win the sales war by putting more effort in," he says. "We'll start earlier in the morning, work lateiinto the night, and if a man wants to see a truck, well jump in the cab and take it to him."
Chris Hodge, one of the country's best-known dealers, has a more optimistic view. "We're doing OK, although business could always be better," he says. "Our trucks are selling well across the board, and if anything we're slightly up on last year. Supply and demand are pretty much in balance, although there are shortages of certain types of vehicle."
Hodge believes many hauliers could find a second-hand truck more appealing than a new one if the economy is truly sliding into recession, and those who do buy new could end up leasing. "The trouble is though that leases are inflexible, and that's not what you want if you're going into a recession," he observes. "There are a lot of small hauliers around who have entered into agreements, and now wish they'd never heard of leasing."
COMMERCIAL MOTOR will be covering the new and used truck and trailer business in more depth from now on. So if you're opening a new site, expanding your existing business or taking one over), offering new services, changing jobs—or just want to express some views on the trade in general, ring Steve Banner on 01778 343268; fox, 01778 345057.