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VED set to boost demand for 4x2s

25th January 2001
Page 51
Page 51, 25th January 2001 — VED set to boost demand for 4x2s
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Which of the following most accurately describes the problem?

• Demand for used trucks forged ahead in January, says independent trader Robert Reynolds. "We saw an upturn in November and December, and that's carried on into this year," he reports. "December was very busy—exceptionally so for the time of year—and the number of retail buyers who attended the auctions we held, and bought trucks, gave us real heart.

"We saw V-registered Daf 83CF 430 tractive units, 6xz midlifts, make well over ho,000 each. It's as though people were saying 'we've got the fuel protests out of the way, now let's get on with the job'."

He believes demand for used 4x2 tractors will start to rise as a result of the Vehicle Excise Duty changes, but doesn't expect the bottom to fall out of the 6x2 tractor market; "People will still want them for use at 44 tonnes, and at 40 to 41 tonnes as well for that matter, if they want to be sure they've got their axle loadings right. The VED changes should benefit eightwheeler sales too," he adds.

"The VED alterations will help, but they may take a bit of time to work through the system," says Lee Smith, general manager of Essex independent used truck dealership Hanbury Riverside. "They will certainly help the 4x2 market, although for some people the help has come too little, too late, and a lot of hauliers are finding that there isn't enough work out there anyway. They're doing a lot of rushing around, but I don't think they're making any money." He's reporting a shortage of desirable tractive units. As far as trailers are concerned, Reynolds finds that desirable tippers and fridges remain in short supply.

Smith doesn't expect a massive increase in demand as a result of the introduction of 44 tonnes, but he does expect the higher limit to stimulate interest in more powerful tractors.

"You want at least a 42ohp engine if you're continually running at 44 tonnes, and I believe that 5o ohp, 520hp, and even 580hp tractors will increasingly come into their own as a result of the weight limit rise," he adds. "But much will depend on whether hauliers get a rate increase from their customers as a consequence of being able to carry more."

"We're starting to see an increase in inquiries, and so far as we're concerned the rigid and specialist markets should do well," says Peter Hassan, who runs independent dealership Euro Wise of Aylsham, Kent. "I don't see demand for attics picking up just yet, however.

One thing that I am hearing is that hauliers who have taken trucks from manufacturers on operating leases are under enormous pressure to return them in as-new condition, or face financial penalties," he says. "I'm also hearing that operators who ask manufacturers for buy-back deals are instead being offered massive front-end discounts to ensure that the truck maker gets the business—but isn't saddled with the vehicles when they come back."