HGV MARKETPLACE

Auction attendances have improved but activity still remains subdued. The churn of stock has also improved as plenty of fresh stock is appearing, although much of it is very similar, but older stock which is sticking still remains a problem.

There have been little pockets of export business with one exporter looking for 7.5t fridges, especially DAF and Mercedes-Benz and another seeking Volvo tractor units. No doubt both were seeking to complete orders as there is little evidence of any further export activity.

Several traders confirmed that they are reasonably busy, some having potential orders which they could fulfil if only they could find the right vehicle at the right price. Conversely, some dealers say it is quiet with few enquiries, so perhaps it depends on the type of vehicle, type of customer and the customer’s requirement which defi nes how busy traders really are at present. A few dealers are currently taking in stock on a sale or return basis to minimise capital outlay and risk.

Manufacturers report continued healthy sales from stocks which are predominantly Euro 5. With the exception of tractor units customers are looking for vehicle types which are not readily available and are being sold for a premium when such vehicles do appear in stock.

Records from our auction visits indicate that the average number of auction entries fell by over 20% last month and on-the-day sales also decreased. Sales of trucks fell by 19.6% in relation to total entries and for trailers it decreased by 12.7%. This is based on seven auction visits with a total of 685 viewed entries. 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 report that converting provisional sales has become more challenging, one auction quoting a current success rate of around 40%, which is a substantial decrease from last month.

This month values have been adjusted in line with our research which indicates:

• 7.5-12t – With the exception of dropsides a general decline in values, especially pre Euro 5

• Multi-wheelers – Tipper values continue to show signs of weakening values.

• Tractor units – With a few exceptions values continue to fall, but less quickly than in recent months.

• Trailers – Values continue to decline.

SMMT data to September 2015 indicates that registrations for new trucks over 6 tonnes continues to be strong compared with the same period last year with over 37% more vehicles registered this year. The largest year on year increase remains tri-axle tractor units with over 54% more registered this year.

Details of HGV registrations for 2015 compared to the same period in 2014 are illustrated below.

7.5t to 12t Vehicles

Whilst there has been a general decline in values this month particularly in pre-Euro 5 vehicles, dropsides continue to perform well. Tidy dropsides remain scarce and attract interest as they appear, those with cranes attached additionally so.

DAF and Renault boxes, mainly Euro 4, remain plentiful as a result of so many being available from the same parcel company. Whilst some are selling it may be a while until they all disappear.

Several MAN TGL 12.210 fridges appeared and proved popular with buyers, the newest, an 11 plate, sold very well.

Isuzu and Mitsubishi Canters often solicit little interest, although there are one or two dealers who specialise in these brands. To muster any auction activity low mileage, manual gearbox and the right body are essential. One example which provoked such interest and subsequently sold was an eight year old Mitsubishi Canter 7C14 dropside with a rear crane, manual gearbox and in tidy condition with only 84,000 kilometres.

13t to 18t Vehicles

13t fridges remain plentiful, particularly on Mercedes-Benz chassis and they continue to be diffi cult to sell, by contrast 18t fridges appear to be attracting more attention. Boxes, curtains and dropsides are popular but successful sales are dictated by the quality of the vehicles being offered.

Almost all of a batch of DAF and MAN 4x2 and 4x4 tippers with plough attachments direct from a council and with incredibly low kilometres sold when they appeared in auction. Surprisingly a few curtains with front fridge compartments proved popular at one auction despite limited operational opportunity.

Dropsides with cranes are popular as ever, as is anything unusual. Refuse truck values are suffering less than larger multi-wheel examples, although they must have the right body and equipment specification to muster sufficient attention.

Multi-wheelers

A good selection of 6x2 Iveco Stralis dropsides with rear mounted cranes and brick grabs proved popular at auction. It is unusual to see so many available at once but on this occasion quantity did not affect values.

Late plate vehicles are being actively sought after and an 11 plate MAN TGS 26.320 fridge from a rental company hit all the right notes at auction, attracting plenty of attention and a high final bid which doubtless resulted in a sale.

A number of former gas bottle carriers have recently appeared at auction. These are viewed at less than chassis cab values because they are often short, with automatic gearboxes and in need of considerable modification to return them to chassis cab condition.

A number of cement mixers providing a choice of chassis and age were met with little enthusiasm and whilst tippers remain popular, values are weakening. Hook loaders and plant carriers are less numerous and always attract interest.

Values for refuse vehicles remain low. One example being a Mercedes Econic 2629 6x4 with domestic bin lift on a 2007 57 plate which sold for just £4,500. Gully tankers are popular and gritters are beginning to attract increased attention as they often do at this time of year.

Tractor Units

6x2 tractor units are so plentiful as was emphasised at a recent auction where the front row of ‘premium tractor units’ was actually several rows of like for like vehicles. It is vehicles that are a little different that are attracting most interest. One such example was a clean 2010 59 plate Scania R620 Topline 6x2 with Griffi n pack which sold very easily when it appeared in auction.

With most stock available being of similar age and specification sales are sluggish. Only the cleanest, lowest mileage examples are selling. Currently DAF, Mercedes-Benz and Volvo FH examples seem to be performing better than other marques. Renault Magnum has lost the small following it once had and Scania’s are suffering from over supply. That said, whilst values continue to fall, they appear to be falling less quickly than in recent months.

4x2 vehicles are less common and are mainly lower specification, lower bhp examples, often with day cabs. Whilst these may appeal to a different kind of buyer they are not exactly flying out of the door, whereas multi-drive tractor units, often highly specifi ed, continue to attract most interest in this sector and generally sell well.

Trailers

Research suggests that the trailer market continues to struggle and the mix and age of trailers available is not to buyers’ requirements, leaving many trailers unsold and values struggling.

Skeletals which have been proving quite popular have lost their appeal as many further examples of similar age and specification have now appeared.

The newest and best quality trailers do attract attention but it is often insufficient to conclude a sale. Fridges have to be of the right specification to muster any interest and because the export market is very quiet sales are slow.

Curtains remain popular providing they are ready to work, as do flats, but boxes are struggling to fi nd new homes.

Specialist trailers are always popular, but even these seem to be attracting less attention at the moment. One specialist trailer that did perform well at auction was a 2006 10.2m triaxle 30,000 litre Crossland vacuum tanker which provoked plenty of interest and sold for £26,000.