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Innovate to accumulate
Page 52
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Scania dealer West Pennine Trucks in Manchester is generating business by thinking outside the box.
Words: Steve Banner Think creatively and your used vehicle operation is more likely to enjoy long-term prosperity. That's the belief held by Stuart Wolstenholme (pictured above), used sales manager at the Middleton, Manchester branch of Scania dealership West Pennine Trucks.
As well as the firm's own website — "that's essential these days," he remarks — Wolstenholme has started using video-sharing site YouTube to promote the second-hand products that his company stocks. It is an approach that is working.
One YouTube visitor has already bought a Renault Premium-based horsebox from the dealership. Other sales will hopefully follow. "We normally get around 100 unique hits a week," he notes. Business has been building steadily across the board since the end of February: "We haven't seen a sudden, massive leap in used sales, but we've definitely got busier,' Wolstenholme reports.
"There isn't a pattern to it, though, that's the strange thing. We've been selling a bit of everything, to trade and export as well as retail customers.
"Recently we've sold trucks as far afield as St Lucia. We've even sent a roadsweeper to Barbados."
Stock levels have gradually fallen due to this increase in activity. "Usually we carry around £2m worth, but at present it's less than £1m," Wolstenholme states.
Prices have yet to rise. "However, they seem to have levelled off, certainly so far as Seanias are concerned," he observes."I'm not so sure about the situation with DAFs."
This matters to him, because West Pennine has quite a few DAFs parked in its yard.
Stocking older trucks
"I'm starting to move some of the )(Fs now, and that's good news because demand for them was absolutely dead," Wolstenholme says. "By contrast, demand for CFs has always ticked over nicely, partly because there's a bit of an export market for them."
But why carry so many DAFs? "We bought some when we were short of Scanias, and we've always taken a lot in part-exchange anyway."
"At present, we're selling 2004-registered XFs at £9,999, and with a three-month driveline warranty," he continues.
"We've just delivered a couple to a major company for a new project it's embarking on, and two to owner-drivers."
West Pennine is not averse to carrying a mixture of makes to appeal to as wide a customer base as it can. It's a policy that helps it sell around 500 to 600 second-hand trucks annually from its depots at Middleton and Stoke-on-Trent.
"I would say that Scanias only account for 50% of what we carry; less if you take into account the CFs we've taken on a sale-or-return basis," he says.
The policy of broadening the dealership's appeal has its limits, however, and Wolstenholme rarely stocks trucks grossing as low as 7.5 tonnes.
"We take the odd one or two in part-exchange, but we've never had any great success with them. We certainly wouldn't go out hunting for them." He is happy to stock older trucks as well as newer ones, hough. It all depends on condition, mileage and the ,vailability of a full service history.
Man prospective buyers of used Scanias are in search YE
i the Is 1 t of the 4-Series tractor units:A few weeks back, had 24 in stock but they've all gone, to a mixture of retail ind export buyers," Wolstenholme says.
'art-exchange implications
le con iriues: "So far as prices are concerned, it seems as hough £20,000 to £25,000 is the sweet spot at present. ['hat sort of money will get you into an early R-Series 6x2 ractor unit, and, in fact, we've just sold a couple of ow-mileage 4x2s at £22,000 apiece."
Mor€ expensive trucks can struggle, and he carries very 'ew of lhem. "If you look at what stock we do carry then rouwo 't see all that many big-money motors out there it the r1oment.
"Tha said, we've just taken in some 06 R-Series 420 "ix2 uni s fitted with tipping and blowing equipment and ;tack exhausts, and we're asking £29,500 for them."
West Pennine is finding it difficult to track down and purchase late-plate, low-mileage rigids. "We're short of them at present," Wolstenholtne admits.
"We had a batch of immaculate 56and 07-registered P230 18-tonne curtainsiders earlier in the year, and we sold all nine in just three weeks," he says.
"I've struggled to replace them other than with one here and there. All I've got at present are some Ivecos on 54 plates that I've taken in part-exchange."
While the used prices of some vehicles may have ceased falling, they remain significantly lower than they were in the admittedly extraordinarily buoyant market of a year or so ago. Obviously that has implications for part-exchange values, which have fallen, too.
"Trade-ins have to be priced realistically or there's no point in taking them, and I think most operators realise that," Wolstenholme observes.
'Put it this way: I've yet to have one of those 'how much?' conversations." •