Britain crashing out of the EU without a deal will likely have a dramatic effect on the price of used trucks as well as new vehicles.
Dave Morgan, Keltruck new and used sales director believes dealers will close the gap between new vehicle prices and used vehicles in the event of World Trade Organisation tariffs being imposed on new vehicles.
“If a new vehicle goes up by 20% the price of a used truck will go up too,” Morgan said. “People try to blame everything on Brexit, and I don’t like to but it’s [the used truck market] not as busy as I thought it would be. Used prices haven’t got to go up, but they will. In this industry, if new [trucks] is going up by whatever the WTO duty is why would a used one stay the same? Dealers will close the gap between new and used, maybe not by 20% or whatever the tariff is, but certainly by a large amount.”
While uncertainty might be causing a bit of a lull in the marketplace, Morgan believes fortunes will change as more operators and cities focus their attentions on clean air zones.
“In 2020 they’ll be another load of people moving out of Euro-4 and Euro-5, whatever they buy I can see sales increasing towards the end of this year or middle of next.”