Buoyant used trucks sales raise hopes for strong year-end
The current problem dealers and trade sellers have, is getting the right stock for the market. With most customers switching to in-fleeting Euro VI vehicles, every dealer, in response, is looking for the same stock. However, it is not just a case of disposal outlets opening their doors and buyers flooding in. The retail customer wants the next vehicles on the fleet to have the latest technologies and safety features, with low mileage and in as new condition. Vehicles outside of these parameters have downward price pressures or remains in stock. Used truck buyers are more aware of what their vehicle requirements are than ever before with many becoming very particular about the vehicles that they buy.
Euro VI specialist vehicles are scarce on the used market so buyers of these vehicles will have to continue to pay penalties to enter, for example, Ultra Low Emissions Zones (ULEZ) for the time being. Taking note for companies running specialist equipment with Euro VI emissions. These companies should carefully consider the financial implications of renewing this equipment with current long lead times, the cost of replacements added to the justification of the Residual Value (RV) write down.
Older, none Euro VI vehicles still sell if they are in good condition, particularly if they have low mileage. However, high mileage on none Euro VI vehicles currently affects the price more than ever before. These trucks have a short shelf life as 2020 approaches and the impending launches of ULEZ.
Small rigid 7.5t> 15t: these are hard to find as Euro VI and as a result command strong values, the longer the body the rarer they are with prices increasing with rarity. Tippers in this sector are almost none existent, and again values are very strong as a result.
18t> 26t Rigids: these are rare used finds as Euro VI. In this weight range, the used market prefers Curtainsiders to Boxes, with tippers in short supply as either Euro V or VI.
32t>: any vehicle with a plant body or crane is very desirable. Boxes and Curtainsiders are in short supply so those available sell strongly. Eight wheel tippers and concrete mixers are the slowest segments in the market, in these segments there is a bit of choice. However, note here that once again, there is not much Euro VI stock, and this sector will be ULEZ sensitive.
Tractor Units: Euro VI in this sector this critical. Some dealers continue to sell Euro V tractors but as stated above they command lower prices and show the gap between Euro V and VI getting bigger. The good news in this sector is that units with big engines such as V8s still have a following and continue to demand higher prices.