Second-hand truck market produces lack-lustre performance

The second hand truck
market is in the
doldrums with more
and more traders
complaining of vehicles not
moving off showroom floors.
Analysts say that while
South Africa remains the
automotive powerhouse
of the continent and
manufacturers shift their
production lines to cater
for the export market, local
demand is subdued.
Already there’s been a
slowdown in the market of
almost 12% and the sluggish
economy is showing no signs
of recovery. Vehicles sales
across the board are expected
to remain subdued until at least
2018, says Byron Messaris,
a senior industry analyst at
Frost & Sullivan Africa. And
this includes the second hand
market that has in the past
proved reasonably bullish.
“The second hand market
is very precarious at present,”
he told FTW. “While one
is inclined to think that
second-hand vehicle sales
will increase in the light
of declining new vehicle
sales, this is not the case.
There is a decline in the
replacement market which is
an interesting development
as the second hand market is
seeing increased stock levels.
And certain vehicle brands
that were extremely popular
first hand are not seeing
the same level of interest in
the second hand market.
This means second hand
inventories are increasing and
it can become problematic in
the long run.”
He said the situation was
further exacerbated by the
fact that vehicle replacement
was declining. “It is a
balancing act at the moment
as vehicles cannot be held for
too long as the maintenance
does escalate. More fleet
managers are finding they
have to balance the number
of years they own a vehicle,
the replacement cost and the
overall running cost of the
vehicle. We foresee the total
cost of ownership becoming
a key aspect in the future as
f leet managers juggle costs
in the current economic
environment.”
According to Neil
Henderson, CEO of
Barloworld Transport,
modern day trucking is
undoubtedly challenging
the status quo.
“It is a tough industry
that often struggles with
poor public perceptions. It
is both capital- and labourintensive,
and – unless you
are passionate about trucks
– there is nothing glamorous
about it,” he said.