Transport Info : What is Renault Trucks’ assessment of used vehicles after this year of crisis?
Eric Bonnard: The used vehicle is taking advantage of the crisis. While we are seeing an average drop of around 30% in new vehicle sales, we ended the year with zero results in the used market. After the drop in sales during the confinement, for example, we achieved growth of + 41% in June (while the average market growth was 33%) and achieved good results on sales in October, November and December. Carriers have switched to second-hand vehicles, creating strong demand and even tension in the market on a European scale. To respond to this, we are highlighting the used truck factory, the used vehicle reconditioning center which allows tractors to be transformed to meet a shortage of forwarders on the market. Last year 500 vehicles left the used truck factory.
TI: Why do carriers favor used vehicles?
EB : The economic uncertainty about the future and the lack of cash require short funding. A used vehicle is financed over 36 to 48 months compared to 60 months for a new vehicle. In addition, our second-hand trucks are immediately available, unlike new ones which require bodywork and a delivery time that is three times longer. The used vehicle is now perceived as a reliable vehicle, which benefits from manufacturer guarantees and maintenance contracts identical to those of new vehicles.. More and more carriers see it as a short-term alternative. Also, with the connectivity integrated into our Step C generation ranges since 2014, customers benefit from the same digital services on their used vehicles as on their new fleet. Renault Trucks is also launching the Predict predictive maintenance service for used vehicles in 2021.
TI: What are the prospects for the future?
EB : The crisis makes forecasts difficult but, in light of the encouraging results over the last months of 2020, we remain optimistic for 2021 with already a good level of demand from carriers. Prices, after falling in April-May, returned to the pre-Covid level at the end of the year, with even a slight increase due to shortages on certain models. In 2021, the used vehicle will be a very important adjustment variable for carriers.
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