Scania used truck market

Scania South Africa has started 2022 extremely well! It has stunned the used truck market with a staggering increase in sales, as Ronald Melville, national sales manager used vehicle sales at Scania South Africa, reveals.

All over the world, shortages of new trucks are being reported. At the time of writing, sales of new cars and trucks were expected to dip by 25% in March 2022 versus March 2021.

Numerous factors have caused this shortage, with the chief among them being the shortage of semiconductors. “From January 2021 through mid-March 2022, the global semiconductor shortage has reduced North American auto production by around 2.3 million cars and trucks, with a potential impact of more than 3.5 million, if announced production cuts can’t be made up,” warns Forbes.

Down Under, the impact is being felt too. While Scania achieved record orders in 2021 – the company sold an incredible 112 000 trucks, largely thanks to the success of its New Truck Generation (NTG) launched globally in 2016 – stock shortages are impacting business.

“The NTG range hit the mark for suitability to Australian customers and conditions, as did the increased quality and durability of the product. But the pandemic’s effect on staff shortages, shipping issues and the weak supply of semiconductors have hit supply,” a spokesperson for Scania Australia recently told GoAuto.

While this sounds like a doom and gloom scenario, there’s a light at the end of the tunnel – and that’s the used market. “The used vehicle market has definitely picked up due to shortages from new truck sales,” notes Scania South Africa’s Melville.

While some truck companies have noticed fairly substantial improvements in used truck demand, Scania South Africa has been swamped with orders. “I am proud to report that, so far, we have done extremely well in the used vehicle market. In fact, we increased sales by 68% in January and February 2022 versus the same period last year,” he reveals.

Melville says that there is now also a shortage of good used trucks on the open market. “Customers also cannot trade in their used vehicles for new vehicles because of the new truck shortages. So, they’re keeping their trucks much longer. Practically, this means that the used trucks getting traded in have much higher mileages,” he explains.

However, he says that he often recommends that smaller operators and start-up businesses opt for used instead of new. “The used trucks can be a stepping stone for them until they are financially able to move on to new trucks.”

Used trucks can also be beneficial during tough times – such as those currently being experienced by many transport operators. “During these uncertain economic times, customers may lack confidence in contract longevity, while the competitiveness of the business means that used vehicles are an attractive proposition. The repayments on used vehicles are also lower than on new vehicles, which helps to alleviate cash flow pressure,” he points out.

But Melville says buyers of used vehicles must take various considerations into account. “This includes dealing with a reputable organisation, ensuring there are sufficient service points in one’s operating area, and checking whether service packages and vehicle service histories are available. The Scania Approved sticker on our used trucks means that a comprehensive inspection has been carried out and that only Scania parts are fitted into the vehicle. Furthermore, we tailor maintenance plans that fit our customers’ business to ensure maximum uptime for their used vehicles,” he comments.

If operators tick all these boxes, Melville believes there’s no reason why a used truck purchase shouldn’t be comparable to a new truck acquisition. “Operators buy a used Scania truck for all the same reasons as they buy a new one. Our trucks are built to keep businesses profitable, and they are engineered to deliver performance, reliability, and economy in any application,” he says. “Operators can also always rely on our effective support services – even when they buy a used Scania truck.”