New truck registrations are down again for the second quarter of 2018. Figures released by the SMMT show that this is the fourth consecutive decline, with this trend likely to continue for the rest of the year. With the date for leaving Europe moving ever closer, new rules regarding Direct Vision Standards (DVS) requiring all HGVs over 12 tonnes entering or operating in Greater London to hold a safety permit from 26 October 2020, and new rules for trucks entering Low Emission Zones (LEZ), there is real pressure on the truck industry.
Source: Society of Motor Manufacturers and Traders (SMMT)
Glass’s predicts that the slowdown in new truck sales will result in a shortage in the used market in three years’ time, just at a time when operators within the haulage industry are looking to consolidate. The likely result will be less used truck buyers. With the few that are left, possibly opting for either a new truck or long-term rental until the used market improves.
Used truck dealers often struggle to predict retail buyer’s requirements, frequently resulting in poor stock choices. This has not helped alleviate buyer concerns and in turn slowed their purchasing process further.
Feedback from busy used truck dealers suggests that sales numbers are hard to deliver with buyers being careful with their choice of vehicles. More buyers are looking for one to two year old, low mileage stock, either because of the lead-time on a new vehicle, or alternatively because of the overall cost. This has resulted in a widening gap in values between two and three year old stock.
With a slow used market, anything a little different still commands a good price. However, we expect run-of-the-mill stock residuals to improve as we move through September and head towards Q4.