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The fresh air blowing across Sharpness Docks is encouraging people to bid for trucks, according to Jeremy Martell, Manheim's commercial sales manager for HGV and plant. The company temporarily transferred its commercial vehicle sales to Sharpness from Dursley, Glos, nearby after rain waterlogged part of the site.
"We sold 73% of the entry at our last sale," he reports. "The tineup included a 1996 iveco Ford Cargo 75E15 7.5-tonne sleeper, lefthand-drive and with a 12ft curtainsider body. It went for £7,000.
"A 1996 MAN L2000 7.5-tonner tipper want for £7,400, while a 1999 Crane Fruehauf Euroliner semi-trailer triaxle on air made just under £14,000. You could probabiy buy one for £16,000 new, so we were pleased." Seventy trucks and 70 items of plant came under the hammer.
Manheim has just moved into Scotland with a joint venture with the Scottish Motor Auction Group. The 50-50 partnership involves joint ownership of a £2m purpose-built auction centre at Blochairn, east of Glasgow city centre. Operating under the Manheim Auctions Glasgow banner, it will sell light commercials, trucks and plant as well as cars.
ORWELL
East of England Mercedes-Benz dealership Orwell Trucks has moved its outlets in Colchester and Newmarket to larger premises. The Colchester base has a seven-bay workshop, while Newmarket has a six-bay workshop plus a showroom for van sales. Orwell is also extending its site in Norwich, having outgrown it in just two years.
GLASS
Second-hand truck dealers should prepare for an
Indian summer, says George Alexander, commercial vehicles editor at Glass's Guide. For he is predicting a mellow and fruitful autumn for newer vehicles. "The values of two-, three-, and fouryear-old trucks will hold up well, and they could even be in short supply," he says. But the news isn't so good for those with older trucks in stock. "Values of Land M-registered trucks are weak.'
Forecasting residuals is becoming more of a minefield, he admits. Fail to give the latest model with all its state-of-the-art technology a healthy value in the second-hand market, and the manufacturer will feel hard done by. "But although it's an exciting new vehicle now, it'll be just another truck in four or five years," he says.
FINANCE The decision by Great Universal Stores (GUS) to shut its vehicle finance business with the loss of 600 jobs has shocked the used truck trade. Traders regard General Guarantee Finance (GGF) as a reliable source of loans for purchasers of second-hand commercial vehicles. GUS decided to dose it because no potential buyer offered a realistic price. It will be wound down in the next three years.
A trader says: "It seems as though fewer companies want to advance loans on second-hand wagons and, frankly, who can blame them? Haulage is on its knees. It puts the independents in a particularly difficult position. Franchised outlets don't have quite the same problem because they can always call an manufacturer finance."
George Alexander, commercial vehicles editor at Glass's Guide, believes any difficulty experienced in obtaining funds will not be long term. "There are other finance houses who aren't in the truck trade at present and are looking for places to put their money," he says.
However, Martin Byrne, of Northwich-based Martin Byrne Commercials in Cheshire, argues that the way price guides presently over-value trucks helps transport firms get finance. The finance company will look at the book value when extending a loan, he says, even though the true value may fall considerably short of the guide price.
GUS has sold its vehicle contract hire business, Highway Vehicle Management, to First National Group for £170m cash. Highway's fleet includes 1,000 commercial vehicles.