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All the right moves

9th September 2010
Page 48
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Page 48, 9th September 2010 — All the right moves
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Which of the following most accurately describes the problem?

It's busy times for Warrington-based Trucks2Go as it moves to a new site and kicks off a new rental business.

Words: Kevin 'avvcittow / Images; iom Cunningham After five years operating out of Bolton, Lancashire,Trucks2Go has moved to a new site in Warrington, Cheshire.

MD and co-owner Chris Hart says the move was sparked by a desire to better utilise money that was otherwise used to pay rent (see sidebar). "Because [director and co-owner] Paula Jefford and I are relatively young in the industry, renting [a place] is just dead money over a longer period. So we were looking for somewhere, hut it is difficult to get a site that will allow us to have planning," he says.

Seeking planning permission to convert a brownfield site into a dealership and vehicle storage area is a slow, costly process, and not always guaranteed to result in a positive outcome. "As this was originally a caravan sales site, it was just a change of use." he explains.

Right place, right time A friend of Jefford's worked for the site's previous owners and let her know they were going to be moving out. A deal for an undisclosed sum was struck and Trucks2Go moved in.

-We have invested £150,000 and that has been for a complete refurbishment of the place," he explains. -It was only going to be a lick of paint, but the place got ransacked before we moved in all the lead piping was ripped out and the ceilings collapsed so we had to do the work, and put in security." The new three-acre site on the A574 at Culcheth is in an ideal location, says Hart, as it links the M6, M62 and the East Lancashire Road.

The relocation has also sparked another move, this time into rental. Jefford explains: "We are having a lot of walk-in business asking if we do spot hire for a couple of days, or from local businesses with a vehicle in the workshop."

The idea to expand into rental stemmed from contracthire deals on traffic-management vehicles.

"We are going to specialise in the highway management [sector], dealing direct with the end-users: these vehicles are a big investment, with the spec they can be £70,000 to £90.000 pounds to buy, so rental is preffered," he says.

Rental also serves another purpose for the core business of retailing used vehicles."In the longer term, for example with used tractor units, as manufacturers put their prices up. a lot of people don't want to pay that, so they want to rent late-year trucks on a oneto two-year basis," he says.

A cunning business plan

-All the spot rental and contract-hire vehicles will go through here, and we will sell the stock from that separate business to Trucks2Go. Rental will help create our own second-hand stock," he adds. Initially the type and size of fleet will he customer dictated, but Hart says if a pattern develops regarding brand and specification. the business will respond to that.

hart, Jefford, general manager Paul Christey and used truck dealer Jim Warhuton will head up the rental business.

The plan is to use manufacturers to provide maintenance, with the potential addition of a mobile technician for repairs."The rental business is still in its infancy. We are open to which way it will go it is really something with potential," Hart says. •


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