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Lead times boost used sales
Page 70
Page 71
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The traditional summer sales slump never really happened and business is booming in the used truck sector. Steve Banner reports from the forecourt.
USED TRUCK SPECIALISTS are looking forward to a buoyant final quarter of the year with plenty of demand from buyers, according to independent dealer Martin Rhodes. "It's still the case that new truck salesmen are quoting delivery dates well into 2005," he explains. "Many operators won't want to wait that long, and may decide to opt for late-year, low-mileage used models instead."
Against that background it's no surprise that he expects prices to remain buoyant:"I'd say they're the same or a little better than they were this time last year."
Lee Smith, director of independent dealership Hanbury Riverside of West Thurrock, Essex,agrees that the market is healthy."If things continue the way they are,I'll be more than happy," he comment& Clearly, long lead times on new vehicles help. However, Smith believes that late-year, low-mileage trucks would still be in demand even if those waits were shorter."There are a lot of people out there who prefer to buy vehicles with the first year's depreciation knocked off," he points out.
Steve Smith of Widnes-based independent dealer Smith Brothers says there's every reason to be optimistic about the prospects for the rest of the year—even factors such as rising oil prices and interest rates could work in the used market's favour. "They could prompt some operators to cut their coat according to their cloth, and buy used instead of new," he suggests.
The upsurge in business after the summer break is already starting. Independent dealer Peter Hassan of Eurowise Truck and Van, based in Lympne, Kent says: "We've pre-sold half the stock we were expecting to get in this month [September]." The driver licensing changes introduced a few years ago clearly haven't killed off the 7.5-tonner yet. "Over the past four weeks or so, we've sold around a dozen 7.5-tonne tippers," Hassan reports. -Anything that's three years old and has done 50,000km seems to be popular, and all types of bodywork seem to be in demand."
Nigel Sharp, who is responsible for used truck sales at Sheffield Daf dealership Chatfields, reports plenty of interest in 7.5-tonne sleepers. "People want dropsiders at 7.5 tonnes too, and there's a big shortage of box vans at that weight," he says.
"We've been finding plenty of interest in 7.5-tonne tippers from people involved in landscape gardening and patio-laying," says Keith Whitaker, who heads up used truck sales at Renault Trucks South's Southampton branch.There's interest in sub-400hp tractor units, as well:"We've had some success selling Volvo FH12 380 6x2 tractor units dating back to 1999not to mention FM12 380s," Hassan explains.-It's a myth that trucks with a bit less power and, in the case of the FM12, a smaller cab won't sell."
Rhodes is particularly impressed by the way Iveco's Stralis is being received. "There aren't that many in the used market at present, but they are performing much better than the old EuroStar ever did," he says."EuroStar was a good truck but tended to fall into the 'cheap and cheerful' category.The Stralis is a much more serious proposition."
On the downside. Rhodes feels that Renault Premium tractor units seem to be struggling a little in the open market. "The 420 can be bought very cheaply, and doesn't always make book money." he says. "Renault dealers are doing their best to boost 420 sales, however, with a three-year, 20% deposit, 1.9% interest finance deal, "It's certainly encouraging people to come through the door,"Whitaker comments. "In fact I know of one buyer who borrowed the deposit from his girlfriend."
Peterborough Renault dealership Fengate Commercials has created a special edition Premium 420 called the Excalibur in a further bid to promote sales.
If there's any cause for concern, it's the suggestion raised by one of the price guides that the new market may be seeing a return to buybacks being set at ridiculously high levels."I'd be surprised if the manufacturers jumped on that bandwagon now they're still paying the penalty for what happened the last time but I'm sure they will again at some point in the future," says Rhodes. "The leasing companies certainly aren't doing so at present."