HGV Editorials April 2015
Written by: Rob Smith
Auction activity has been fairly buoyant recently and with a few exceptions most sales have been well attended and well stocked. Dealers continue to buy and evidence suggests that some confidence is returning to the point where more are purchasing are for stock. As dealers are a mainly cautious breed no-one admits to being busy and the best response received to “how’s trade?” was “busy treading water.” One dealer seeking to buy a two to three year old Scania 18t chassis admitted defeat. With nothing suitable in the market it left him trying to convince his customer to take something older. This reflects the current market, plenty of older stock and little in the way of newer vehicles.
Old stock remains a problem as it struggles to find new homes. Fresh stock on the other hand is proving to be much more attractive and in the main it appears to be selling. Exporters are active but are being selective in their purchases, their current choice being vehicles sporting the three pointed star.
Major fleets continue to provide the auctions with stock but most of it is aged around eight years old, the exception being tractor units. Here the choice of marque, cab type, BHP and age appears to be expanding.
Values of Euro 4 7.5t-12t boxes together with older variants have decreased, whilst values of other body styles remain steady. One exception being Euro 4 and Euro 5 tippers where values are moving upwards.
Apart from Euro 5 models 13t-18t values are generally on the slide with the exception of tippers and skips which remain unchanged. Three axle multi-wheel fridge values have dropped whereas 3+ axle tipper values have increased.
Both 4x2 and 6x2 tractor unit values are in decline, possibly due to the increased stock. This does not apply to day cab variants which remain unchanged and Mercedes tractor units of all axle combinations have seen values increase.
The average number of auction entries increased slightly last month. On-the-day sales for trucks remained the same but for trailers it decreased by 1.3%. As always it should be remembered that these are ‘hammer sales’ on-the-day and any number of provisional bids may be converted post sale. Auctions are currently reporting a high conversion rate for provisional sales.
Manufacturers report continued healthy sales but reduced stock is a problem. Customers are seeking vehicle types which are not always available. This may affect future values as demand begins to exceed supply.
SMMT data for February 2015 indicates that the healthy start to the year continues unabated with almost 30% more trucks over 6 tonnes registered compared with the same period last year. The largest increase being triaxle tractor units where almost double the amount has been registered this year compared with the same period last year.
Details of HGV registrations for 2015 compared to the same period in 2014 are illustrated below.