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More truck for your buck
Page 52
Page 53
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Used truck dealers are ticking over, and with phones starting to ring, maybe things aren't as gloomy as they appeared. With things the way they are economically, it's definitely a buyer's market.
Words: Steve Banner Britain's used truck market is ticking over in the teeth of the recession. Dealers are still making sales, but the boom days are now a distant memory.
Anthony Wright, managing director of independent dealer and exporter European Vehicle Sales, near Doncaster, explains: "We're doing bits and pieces of business, but we're not breaking any records. It's quiet and you have to work hard for each sale."
This is echoed by Lee Smith, a director of independent dealership Hanbury Riverside in West Thurrock, Essex. "We're taking plenty of enquiries and we're managing to do some deals.We're not doing as badly as some. "Because of the economic uncertainty, some operators have postponed replacing their trucks for so long that they're now getting problems with them," he continues.
Inclement weather
Harsh winter weather has also helped to accelerate this trend. "I know of one haulier who suffered a turbo failure and a failed water pump on the same vehicle," says Smith. "He decided that enough was enough and he came to talk to me about replacing some of his older trucks."
Paul Prewett, general manager, used sales, at Scania dealership TruckEast, which has outlets in Felixstowe, Stowmarket and Wellingborough, says: "Things weren't too good at the start of the year, but the phones have been ringing since mid-January.
"Consequently, I've got three or four deals on the go. The situation isn't brilliant, but we can live with it. One thing I'm not doing at the moment, though, is buying in stock. I'll only buy a truck if I know tht I've got a customer for it. Stock is easy to find there's plenty about but whether or not it's the right stock is another matter entirely."
Prewett stresses that it's not all doom and gloom. "I've got people telling me that they've just taken on another job so they need an extra truck," he says. "I've also got people telling me that they've put off purchasing for several months because of the state of the economy and hired in trucks instead, but they've now decided to buy."
If you acquire a truck on HP and keep up the monthly payments, then at least you will have an asset once you have handed over your final instalment. If you rent, you won't.
Many dealers report that hauliers can still get funds. "I think we've had two finance proposals turned down over the past 12 months," says Smith.
"The finance companies don't seem to be worried about lending money on vehicles," Prewett observes.
Operators that are in the market to buy will find they are paying less for their new acquisition than they would have done a few months ago.
"Prices have undoubtedly come down over the past year," explains Smith.
Value for money
"You'll struggle to sell anything costing more than £25,000. But don't forget that £20,000 buys an awful lot of truck these days," says Bob Morris of Volvo dealership Hartshorne's Walsall used truck centre. "Unfortunately, if you bought a truck 18 months ago when the market was booming, that truck is now three or four years old. So when you want to change it, you won't get as much for your part-exchange as you expected," says one dealer.
Some dealers are fishing in a bigger pond to maximise their selling opportunities "We sell everything from £4,000 rigids to £70,000 tractor units and things are going well for us," says Jonathan Bownes, sales executive at Volvo dealership Thomas Hardie's central used truck operation in Cheshire.
"Unit sales are a bit slow that's usually the case at this time of year but there's plenty of interest in rigids.
"Prices have undoubtedly taken a hit, but you can still get decent money for the right vehicle," Bownes says. "What's more, sterling's drop in value has brought us some business from Ireland, which is in the euro zone." "We've just bought 15 2005-registered Scanias from a well-known fleet operator," says Hanbury Riverside's Smith. '"They're older vehicles than we would usually stock, but they've been maintained in the Scania network and they're immaculate. What we're doing is giving our customers another option."
Stock take
One thing he has not done, though, is cut back on stock. "If people want, say, five trucks, then they know they can ring me and I'll have them available," he says Bownes agrees with Smith that some sales are being generated by hauliers who have hung on to their existing vehicles for too long and are now experiencing reliability headaches.
"If a clutch goes bang on the M25, you can be left with a £3,000 bill," he remarks.
So when will things start to improve?
"I think the trade will just about hold its own during the first three months of this year," Prewett replies. "After that, the confidence will come back."
"Never forget that we sell necessary tools," says Bownes. "Trailers can't pull themselves." •