Bupbacks to go to longer deals
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Short.torm buy-back contracts
could be on their way out as manufacturers try to persuade fleets to switch to deals lasting for up to seven years, predicts Mercedes-Benz commercial vehicle dealer council chairman David Grant.
"The major players are starting to realise that while residual value guarantees are a sales aid, they're also a contingent liability,' he says.
He also detects a shift towards service/maintenance-inclusive pricing, and believes this to be essential if manufacturer buy-backs are to continue.
"They should not be offered without a ser vicing agreement of some sort," he insists. "In its absence, some of the trucks bought back are being returned in a terrible condition."
Managing director of Ipswich-based Orwell Trucks, and now responsible for the former Jim Russell territory in Norfolk as a consequence of Mercedes' network reorganisation, Grant fears Britain may be talking itself into a recession.
Some areas of manufacturing are being hit hard, he agrees, but the service sector remains buoyant. "And the UK is good at service industries," he says. "For example, we've got one of the most efficient logistics industries in the world."
Orwell is enjoying a minisoles boom. "Our order book is superb, and we're forwardsold on Ategos until February," Grant reports.
"There's plenty of demand for Sprinters, and Vito is running away with itself. And the revised Actros, with its new HL8 axle, is now giving fuel returns that meet and often exceed the best performance from its rivals."