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Recession yet 1 si Summer may be not be the

6th September 2001
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Page 50, 6th September 2001 — Recession yet 1 si Summer may be not be the
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Which of the following most accurately describes the problem?

liveliest period of the year for independent dealers, but that doesn't mean to say that there is no activity at all.

"We're getting a few Inquiries through, although the conversion rate isn't as high as normal," says Mike Smith of Smith Brothers Services of Widnes, Cheshire.

"The tractors that are selling tend to be three to four-year-old ones priced from £15,000 to £30,000," he continues. "We can find homes for older, cheaper ones, but the introduction of higher weight limits makes older units difficult to sell because they may not be suitable for 44 tonne use.

"There's a fair demand for six-wheel rig,ids at present for use as curtainsiders, flats, and crane vehicles," he adds.

"Everyone says there is a recession coming, but I don't think it is happening in our business," says Jimmy Jones, managing director of Birmingham's Stadium Commercials. "It's been a little bit quiet, but people have been away on holiday."

Jones reckons that one of Stadium's advantages is the diverse nature of its stock—it carries everything from car transporters to dock spotters as well as conventional tractors and rigids—which means that it is not tied to the fortunes of one part of the market. It's also busy exporting to the Caribbean and subSaharan Africa.

"We're next door t University of Central England," he says. "Pi come from overseas • study, and want to ta truck back to their oi country when they re

"The tractor marl quiet, but demand for tippers is fairly buoy; and tippers with grat sold fairly quickly," s spokesman for MM Acquisitions of Presti for 7.5-tormers, vehir with fridge and other specialist bodies can moved on, but those ordinary curtainsidei bodies can stick a bit "We've been flat ii I suspect that it's be we specialise in heav haulage tractors am loaders, and they're in demand," says Joe

r Gilder & Sons of n on-the-Water, ershire. "It's a .e difficult to sell -the-mill two to fear-old tractors, e it's so cheap and r operators to 14 w one."

a says that nk vehicles is rig a lot harder, and : because of the Ii of the pound. enufacturers are nk used trucks Ives at prices lower can buy them at, y are prepared to iyers very generous erms," he observes. of the problems 3 UK market is the Nhich the prices tided by lateled tractors are

continuing to decline, says Adrian James of James of Stokesley in North Yorkshire, As Joe Gilder paints out, the ability to rent new trucks cheaply is having a big impact.

Older units have tumbled in value too: "You can buy an excellent five or six year old one for 10% of what it cost new," James says— and that causes dealers difficulties when such vehicles are offered in part-exchange.

The dealer has no option but to be truthful and tell the haulier that his truck is worth far less than he thinks it is.

The haulier is often well aware that this is the case, but may not wish to admit this uncomfortable fact to himself.

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Locations: Birmingham

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