OVERSEAS COMPETITION
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UK firms looking for Euro-4 models could face increased competition from exporters looking for more modem vehicles than they might have taken in the past, exacerbating the shortage and driving prices even higher.
Iveco's Paul Evans takes the view that he would prefer to see any Euro-4 vehicles he and his colleagues get hold of sold here, so that Iveco's UK operation benefits from any aftersales revenue they generate.
"I can't see why we would want to export Euro-4s, or Euro-5s for that matter, given that we can sell everything we've got domestically," he says.
As a consequence, any export activities focus on Euro-3-compliant vehicles.
"Demand for Euro-3 trucks tractor units especially — from overseas markets remains quite strong," he says.
Perhaps surprisingly, only about 25% of the used vehicles that Iveco handles are disposed of through the manufacturer's dealerships. "The remainder are sold through independent non-franchised dealers and traders, and some we sell directly to operators." Evans says.
"That can happen when a truck is subjec to a buy-back agreement," he continues. "Under those circumstances, we may end up purchasing it from the finance company then selling it to the guy who had the vehicl on finance from new. What we never do though is dispose of trucks through the auctions," he says. "We don't need to, and in any event, we don't think they represent the best route to market."