Capital Equipment News October 2020

USED TRUCKS

Scania places financial agility at the centre of a repurposed value chain.

key issues to consider when buying pre-owned trucks

In tough economic times, fleet owners often turn to used trucks to service their few contracts. This feature explores the advantages of taking the used route and highlights some of the issues that buyers should be aware of. By Mark Botha.

A sked about the effects of the current financial climate on the truck industry, Scania GM Used Vehicles Harold Donachie says fleet managers are feeling the impact of tough trading conditions as “challenging economic realities bite”. Heavy duty truck operators, he says, have always had a cost-saving focus, but many must make this their top priority now, in the midst of a cash-flow crisis. “South Africa’s logistics sector contributed some 48% to total GDP in 2019 and therefore has a direct impact on the growth of the economy. This sector is also integral to business efficiency. With many companies forced to reduce fleet size and staff, business sustainability is under real pressure.”

He says increasingly more businesses are taking risks in terms of safety and compliance as they run trucks for longer and defer upgrades while, at the same time, increasing maintenance intervals. This is the result of having to chase short-term revenue as business opportunities shrink and margins tighten. “During such uncertain economic times, customers may not have confidence in the longevity of contracts or the competitiveness of their businesses, making the purchase of used vehicles attractive. The repayments on used vehicles are lower than those for new vehicles, which alleviates pressure on cash flow at present.” Annelie van Rooyen, head of TruckStore, a division within Daimler Trucks and Buses Southern Africa and part of an international network for used trucks, says

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