There are plenty of things to worry about at the moment, but for truck operators and truck dealers alike, there is plenty of uncertainty surrounding the used truck market.
Truck operators are either operating flat out – those in food logistics for example – or have their trucks parked up and SORNed – those who transport cars, for example. There are very few businesses operating in the middle ground.
So those who are busy will have their usual income – and maybe more – and their trucks will be seeing plenty of use. So, these companies truck buying cycles should remain the same.
But will the truck manufacturers be able to meet any new truck orders in the near future?
All European truck manufacturing factories have closed due to COVID 19. This has been put down to the lack of reliable availability of components plus the dangers involved to staff who need to work in close proximity to each other.
Even when the truck factories start to operate once more, they will not be at full capacity for some while – especially if social distancing measures are put in place on the production line.
New truck lead times will inevitably start to lengthen considerably.
Impact on the used truck market
Used truck dealers are currently sitting with plenty of stock depreciating in their yards. Some dealers are reporting that they are making some sales, but not nearly enough to keep the wolf from the door.
What will the stock be worth after lockdown has been lifted? This may depend on the type of stock and if there is any pent-up demand. If truck operators cannot get new trucks, will they be attempting to extend the agreement on their existing ones or will they be looking to the late used market to see if there are trucks that will serve a purpose in the meantime.
This may work for tractor units, but will a large, established operator want to run around in a rigid that is the wrong colour and without a particular body that they use for their contracts?
Share your views
We would love to hear what you think about the situation – whether you are a truck operator or dealer then please get in touch with us via our contact page.