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3rd February 2011
Page 42
Page 42, 3rd February 2011 — NEW PRICES
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Which of the following most accurately describes the problem?

New trucks ordered fresh from the factory have risen in price significantly. What impact is that having on business? “Customers are operating on tight margins, so it’s difficult to sell them vehicles that are undoubtedly more expensive than they used to be,” says Strevens.

“But residual values have improved significantly so the cost-of-ownership equation is returning to a sounder footing. It was a lot harder to sell new vehicles when demand for used was flat on its back.” Many operators are also finding that maintenance costs are rising because they have kept their trucks for longer than they would normally have done as a consequence of the recession, and now need to replace them. “As a result, we’ve got a strong order bank, with commitments from some customers for 2011 and beyond,” he says.

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