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UK operators are head to head with foreign buyers

7th April 2005, Page 68
7th April 2005
Page 68
Page 68, 7th April 2005 — UK operators are head to head with foreign buyers
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Manufacturers might not see exports as a major concern but down at the auction houses foreign buyers are underpinning a vibrant trade. Hot properties include 3-Series Scania tractors and MAN M2000 rigids.

Gone are the days when you could get rich by selling tired old stock overseas. These days there are specific market conditions and reams of legislation to keep an eye on. Exporters have to know their destinations if they hope to make a profit.

Down at Doncaster, the home of Commercial Vehicle Auctions, Charlie Wright admits that the industry would be stuck without this effervescent overseas trade,particularly to Russia, Cyprus and Tanzania.

One of the most desirable vehicles for export is the 3-Series Scania.Prices,Wright reports, have gone through the roof. Tag and mid-lifts are fetching impressive money — a 1990 3-Series can be expected to bring in about £6,000 (ex-VAT).

"When they're making that kind of money, and getting dearer, they might start looking sideways at other manufacturers,"says Wright. "But countries like Tanzania are all geared up for servicing and maintenance of Scanias. Get an Iveco, which might be cheaper in the UK, and if you have a problem over there you might be stuck with it."

Another product performing well, this time out east in Russia, is MAN's M2000 1S-tonne rigid, typically 18.224 models with fridges and box vans. With as-new 1998 and 2000 models going under the hammer they are still cheaper to buy and convert than their equivalents on the Continent.

The main factor is the cheap labour available for the conversion process that makes the price more competitive.As always the tipper market is keen, with fresh stock at a premium. But these days there is added impetus. The recent legislation in Cyprus banning chassis modifications means exporters are now competing with domestic buyers for purpose-built tippers.

A typical tipper dated between 1995 and 1999 will have Cypriot,Tanzanian, Irish and domestic bidders competing head to head for what little arrives in the marketplace. •

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