OPINION: THE INFLUENCES OF EXPORT MARKET ON USED TRUCK VALUES
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Many UK truck dealers pay scant regard to the export market and its influence on the values of used trucks.
Many years ago, foreign countries were seen as a dumping ground for older models from certain brands. Trucks were transported to dockside either as complete vehicles or as container loads of spares. Popular importing countries were Cyprus, Indonesia, Zimbabwe, and the Caribbean – essentially right-handdrive countries with developing transport networks. For some years this export market has been able to absorb much of the supply of older used trucks, with varying degrees of success enjoyed by major UK brands.
However, with the advent of newer, more sophisticated models and ever-tightening emissions legislation, the export landscape has changed. Emerging countries now require models with lower emissions, but have some reluctance to accept advanced technology due to lack of technical support.
This lack of knowledge and infrastructure may well become more apparent when considering the suitability for export of Euro-4/5 trucks fitted with SCR to countries where there is little or no AdBlue.
AdBlue storage is also subject to temperature restrictions, so SCR-equipped vehicles may also prove unsuitable for operations in countries with climatic extremes.
We have also seen some countries change their import restrictions that relate to vehicle age, which can be based on production date rather than registration date. One in particular altered their criteria from five years to three, which immediately affected the desirability, and hence value, of older vehicles. Another fly in the ointment is the exchange rate between sterling and the currency of any importing country. We have seen large fluctuations in rates over recent years, and these once again affect export transaction prices.
Yet another limiting factor is the increasing presence of global truck manufacturers in these emerging markets. As more and better known truck brands establish footholds, and domestic manufacturers develop more sophisticated products to compete, the market for older ex-UK vehicles diminishes.
When dealers approach export specialists for underwrites on part-exchanges, they need to be aware of the influencing factors behind the subsequent valuations, and not be surprised if they are lower than expected.
● By John Watts, CAP senior editor, commercial vehicles