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Why buy a used truck?

3rd March 2011, Page 44
3rd March 2011
Page 44
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Page 44, 3rd March 2011 — Why buy a used truck?
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Keywords : Truck, Vehicles, Transport, Trucks

With spending cuts beginning to bite and the future of UK plc still in doubt, there are good reasons for buying used rather than new when it comes to trucks

Words: Steve Banner Most operators used to split roughly into two

camps: those who mainly bought new trucks, and those who generally bought second-hand.

However, a growing number of the former are now joining the latter by choosing to follow the late-registered used route, say dealers.

It’s not hard to see why, says Lee Smith, a director of West Thurrock, Essex-based independent dealership Hanbury Riverside. The key reason is the soaring price of factory-fresh vehicles.

Less expenditure

“These days you can be looking at £80,000 to £90,000 for a

new tractor unit,” he says. “A late-registered example can be acquired for half that igure, so you’re immediately involved in signiicantly less capital expenditure and putting a lot less inancial pressure on yourself. You can keep your costs manageable.

“I’ve got one customer who wants 10 late-plate units, which means he’ll be replacing his entire leet. That will cost him around £450,000 rather than the £800,000 to £900,000 it would cost him if he bought new, and the trucks he’ll be getting will all be Euro-5.” Admittedly, used prices are rising, but there is still a wide gap between the new and the used price.

“The cost saving is the key reason for buying used rather than new,” agrees Adrian McDade, MD of independent dealer Mac’s Truck Sales of Huddersield. “It’s massive.” “Operators that not bought a new truck for two or three years and are now back in the market are getting a big shock,” says Matt Heath, general manager, leet sales, at Maritime Transport, and responsible for the company’s used truck disposal operation.

“Prices have risen substantially.” And, says Hanbury Riverside’s Smith: “If you’re looking to get your used vehicle inanced, then the deposit you’ll have to pay if you buy used rather than new will be a lot lower thanks to the price difference and so will be the monthly payments. Another way of looking at it is that you can buy two for the price of one

new one; in effect you’re getting more for your money.” ▲ Lee Smith from Tony Bevan, general manager, sales at MAN’s TopUsed Hanbury Riverside

operation, says: “Because used trucks are cheaper than new ones, your holding costs are lower and that may mean you can be more competitive so far as rates are concerned.” Obtaining inance need not be any more of an issue with a second-hand truck than it is with a new one, Smith contends. “We’re not seeing any problems,” he says.

“Getting inance isn’t usually a dificulty, although the operator may not always be happy about the rate he’s got to pay,” says McDade.

One industry insider reckons new truck prices have reached such heights that the only way many operators will be able to afford them is by leasing. In contrast, the price of many second-vehicles makes it possible to buy them outright.

“That means you’ve got an asset to show on your books – and that is important for many irms – and if times get tough you can always sell it and realise some cash,” says Bevan. “A lease may not be quite so easy to get out of.” Depending on its age and the emissions standard it meets, a used truck might beneit from a Reduced Pollution Certiicate, valid for the lifetime of the vehicle and resulting in an annual VED rebate, says Smith. A new one will not.

“What’s more, the free servicing deals that once came with new trucks aren’t around to the same extent nowadays,” he says.

Hanbury Riverside provides a three-month driveline warranty with each used truck it sells, and that is not untypical.

“Furthermore, if a vehicle needs, say, a new clutch, then it will be itted before we sell it, and everything we supply is sold with at least a nine-month MoT,” says Smith. Approved used trucks marketed by manufacturers come with an even longer warranty. Ivecos sold under the Used Plus banner, for example, are backed by a sixmonth guarantee, says Paul Evans, director, used vehicle operations.

However, new trucks come with a much longer warranty and will, by deinition, last longer than one that has already been working for several years.

The perks of buying used

Opt for a brand-new DAF CF or XF, for instance, and you enjoy a two-year unlimited mileage warranty, plus two years of preventative maintenance up to 400,000km. In addition, you beneit from two years of being able to call on DAFaid for roadside assistance if your truck breaks down because a warrantable item has failed.

The need for the reassurance provided by a long warranty is less important for a used truck if it has been regularly maintained by reputable agents and has a full service history. In that situation, and providing all the recall notices and software updates have been implemented, mileage need not be an issue, says Smith, given how much better built today’s trucks are, compared with 20 or 30 years ago.

“Around 300,000km to 400,000km is not excessive given that vehicles are more than capable of covering in excess of one million kilometres,” says Evans. “That’s especially the case if you’re talking about one of the pedigree brands: DAF, Volvo or Scania, for example.” McDade agrees. “Trucks are usually so well maintained these days that you can get a lot more life out of them than you used to be able to,” he says.

However, there are still some operators who are heavily inluenced by mileage, says Wolstenholme, a view that is shared by McDade. “But I come back to the point that if the truck has been regularly serviced, then it need not be an issue,” adds McDade.

Extended warranties can usually be purchased if the customer is worried a major component might fail, but the reliability of second-hand vehicles sourced from reputable dealers means they are not bought in huge numbers. “We only sold one during the whole of last year,” says Wolstenholme.

It is also worth noting that many second-hand trucks can be covered by repair and maintenance contracts. “The packages on offer to cover new trucks are very like those available for new ones,” says Bevan.

Clearly, if a truck is 12 to 15 years old and has been to the moon and back a couple of times, then there are going to be reliability issues. But should a vehicle of that age still be on arduous daily triple-shift trunking or distribution work on Britain’s clogged highways?

While the irst time you clap eyes on your new truck is when it is delivered, you can go and look at a used example, crawl all over it and test drive it in order to satisfy yourself that it is exactly what you want.

Typically one to three years old and covering around 100,000km to 120,000km a year – almost all done on motorways – on container work, Maritime’s used trucks are sourced straight from the company’s leet. “At present we’ve got 675 available,” says Heath.

It’s a small world after all

“Our trucks almost always have just one driver from new and we can even tell you the individual’s name if you wish.

“In fact, one reason a customer bought a vehicle from us recently was that he happened to know the bloke who’d been driving it.

“Remember that if you buy used, then you are not going to be hit by the massive depreciation that affects a truck the minute the registration plates are irst screwed on.

“Nor will you have to suffer what may be initially poor fuel returns.” When you take delivery two or three years after the date of irst registration, the vehicle will be nicely run in.

“Euro-3 and Euro-4 trucks are likely to be better on fuel than a brand-new Euro-5,” says McDade.

There are still drivers who prefer to use an analogue tachograph. Depending on its age, a second-hand truck can fulil this requirement – a new one will be digital – and might not need replenishing with AdBlue every so often.

“Not wanting to use a digital tachograph or AdBlue are nowhere near the stumbling blocks they once were, though,” says Wolstenholme.

The truck concerned might also be equipped with a manual box, which is still favoured by many older drivers, although late-plate used trucks are increasingly more likely to be itted with automated transmissions.

Buy a used vehicle from Maritime and there is work available from the company if you want it, says Heath. It can also help ledgling owner-drivers understand and comply with all the rules and regulations that will govern their activities.

“We work closely with a transport consultant who can guide them through the whole process of becoming an operator, including applying for an O-licence,” he says.

So, if you are prepared to go second-hand, you can replace your existing trucks, or set yourself up as an owner-operator, for a comparatively modest outlay. Then all you’ve got to do is run at a proit... ■


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