RoadTransport.com logo
You are in:  News>Product News

New CV prices may drop below used

Tuesday 17 March 2009 04:21

It will soon be possible to buy a new commercial vehicle for less than a used one if manufacturers continue to offer "damaging" levels of discount, according to George Alexander, editor of Glass's Guide.

He says: "Some manufacturers are walking a tightrope with the deals they're now offering, damaging their long-term reputations when the market recovers.

"It's getting to the point where it'll be cheaper to buy a new vehicle than purchase a recent example at auction."

He adds that companies should lower actual list prices instead of maintaining them to give the illusion that a substantial deal is on the table.

"Manufacturers may have to raise CV prices as the value of sterling continues to suffer, leading to a disparity between the vehicle list price and what a late-year example is actually worth," Alexander says.

"Dealers from many franchises have expressed concern that manufacturers will insist on them taking more new stock than can be sensibly retailed."

However, he reports that the used market is buoyant.

"The major contributing factor has most likely been that big vendors have slashed their reserve prices, or even moved to selling without a reserve. This change in strategy by the major leasing and rental firms appears to be a direct result of the credit crunch. Risk-averse company owners - typically bankers - are being very active in instructing them to cash out the inventory and fill the coffers."

Email a friend

Related Articles

Our Publications

Subscribe to CMSubscribe to MT