CV market can succeed despite economic doom-mongering

Commercial vehicle dealers and wholesale vendors can prevail in the face of current economic circumstances, but they must make appropriate changes in order to stay profitable as times get tougher, according to EurotaxGlass’s, publisher of Glass’s Guide to Commercial Vehicle Values.

Retailers must abide by well-proven principles of matching stock with local market demand, explains George Alexander, Chief Commercial Vehicle Editor at EurotaxGlass’s. “Regardless of how the wider economy is performing, good profits can be taken if the right stock is offered at an appropriate price. Smart buying, therefore, has become essential for dealers.”

Vendors arguably face a tougher challenge. Used van stock levels have grown sharply over recent weeks, and this has had a pronounced effect on prices at a time of year when business tends to be slow. “Disposal managers must act decisively and be ready to accept realistic bids for their lots,” says Alexander. “While some prices achieved may disappoint, it is better to keep stock turning, or the market could grind to a halt. Recent history has taught us that, when the used commercial market stagnates, confidence is quickly lost and it can take months to re-establish a thriving marketplace.”

Price is not the only factor, however, and some businesses might benefit from a review of their ‘usual’ policies on stock age and model mix. Alexander continues, “Dealers may decide to offer a wider spread of vehicles, with a greater emphasis on value-for-money models. Just as important is recognising when a unit simply won’t shift – in such an instance the vehicle must be put back into the market to release cash which can be better invested in more appealing stock.

“Despite a tendency to be concerned when the City talks of stock market turmoil, businesses still need to be kept mobile so there will continue to be customers in the market for commercial vehicles. The successful retailers will be those who take a proactive approach and prepare for any market slowdown,” concludes Alexander.