What’s up in the used market?
What’s up in the used market?
Are prices rising or falling, and is it still possible to get a great deal? We talk to Thabo Moloi, general manager of used trucks and buses at Daimler Truck Southern Africa (DTSA), to shed some light on the situation.
Moloi, who is also a member of the DTSA executive committee, handles the overall management of the used trucks portfolio – a role he assumed on 1 February 2023. He also oversees the expansion of TruckStore’s footprint across Southern Africa.
Please tell us about your career to date. What have been the highlights?
My experience in the company spans over a decade and my journey has been nothing short of amazing. I kicked off as a technical database manager, advancing to manager of the technical and service division in 2010, which then ultimately opened doors for me as head of the customer service and parts (CSP) division for Mercedes-Benz Trucks in 2017.
Top achievements during my reign as the head of CSP included the introduction of TruckParts into South Africa and being awarded the “Best Market Implementation” accolade in 2017, as well as the “Best Sales Excellence” in 2019 at the Global Customer Service and Parts conference in Germany. These milestones are key indicators of the great strides that my team and I made in cementing ourselves as world-class leaders in the CSP environment.
Why did you decide to enter the used trucks business?
Having worked in the after-sales environment in various management roles supporting DTSA’s reputable Mercedes-Benz and FUSO Trucks brands, I have become increasingly convinced by the strength of DTSA’s clear strategy for its used business portfolio.
I strongly believe that my in-depth knowledge of the company and its brands will create further opportunities to accelerate the growth and sustainability of TruckStore across Southern Africa, with customers’ business needs at the core. I will be responsible for leading the business operations and strategy for TruckStore, including the management of the nationwide agency sales model.
Last year, by all accounts, used truck prices were higher than usual because new trucks were not necessarily available. What is the situation this year?
The current pricing for used vehicles remains relatively stable and any potential price improvement will only be realised towards the end of the year.
What is the situation when it comes to availability? Do you have sufficient high-quality used trucks in order to meet demand?
I can confirm that TruckStore is currently extremely well stocked with multiple brands, both in terms of trucks and trailers across different year models. We are confident we are able to meet almost any demand at the moment.
From which sectors are you experiencing the most demand?
At the moment, we are experiencing some good volume demand from a variety of fleet customers.
With the tight economy, declining rand, and an almost certain increase in new truck prices, are more and more transport operators turning to used?
For the most part, we have noticed that customers are typically either in the market for a new or a used vehicle depending on their contract conditions. We have, however, seen a spike which may suggest opportunities for operators to procure used as opposed to new.
There will always be a high demand for both new and used trucks in South Africa. Generally, pricing of new vehicles does not have a large impact on used vehicle sales.
Can you tell us more about the individual financial services, vehicle buy-back, export services, and service contracts that you currently provide?
We have an in-house captive finance solution, Daimler Truck Financial Services, and we are also able to offer various terms of instalment sales, operating leases, and contract purchases.
With regards to export services, we have an experienced partner who we contract to export on our behalf to all countries that use right-hand drive vehicles.
How do you view the role of used vehicle auctions?
I would say purchasing a vehicle, in general, is a huge step and often comes with a responsibility, hence we encourage operators to always weigh up the risks of procuring a vehicle “as is” from an auction, as opposed to procuring it through a reputable brand like TruckStore.
What are your hopes and aspirations for TruckStore?
To continue expanding our footprint in South Africa through our TruckStore agency model, by fully leveraging our existing dealer network.
Currently, we have a presence in all major cities with eight agents on board and counting. This allows operators to deal with a local TruckStore agent and have first-hand experience of TruckStore product and service offerings irrespective of where they are in the country.
Most importantly, we would like to remain one of the major suppliers of quality used commercial vehicles across the region, catering directly to the business needs of our customers.
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