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Demand for used SA trucks grows as African currencies weaken

26th June 2015

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Weakening African currencies have made it more attractive for many economies on the continent to buy used trucks from South Africa, rather than imported vehicles, says Volvo Group South-East Africa president Torbjörn Christensson.

Used trucks from South Africa are also more suitable to African conditions than new or used trucks that are imported – often ‘dumped’ – from more advanced economies, such as those in Europe, he adds.

This is why Volvo Group’s importer in Zambia is, for example, also focusing on importing used trucks from South Africa.

“Some years ago, we sold 10% of our new trucks outside South Africa – that is 600 out of roughly 6 000 – and this is where we are with our used truck business at the moment,” notes Christensson.

“Our vision is to sell 30% of our used trucks outside South Africa. “This can happen if we do it correctly. There is demand for more correctly specced trucks in Africa.”

Today, around 30% of the group’s new trucks are sold outside South Africa.

New Used Facility
Volvo Group Southern Africa has opened a new R3-million Volvo Used Truck Centre in Boksburg, Gauteng.

“Although Volvo Group has always been in the used trucks business, the new facility adds a lot of focus, dedication and drive to this portion of our local operations,” says Volvo Trucks South Africa MD Christian Coolsaet.

The Volvo Used Truck Centre offers customers advice and trade-in deals on all makes of trucks.

The sales team works closely with their Volvo Bus colleagues in order to also offer bus deals at the facility.

Part of the dealership’s function is to facilitate trade-ins on all truck makes and to offer trade-backs to existing Renault Trucks and Volvo Trucks customers.

“Trade-in deals are the enabler for new-vehicle business,” says Coolsaet.

He concurs with Christensson that the group has seen growing market demand for used trucks from customers across Southern and Eastern Africa, particularly for vehicles that have been developed with the region’s operating conditions and legislation in mind.

“Over the past couple of years, we have seen the number of new entrants in the market grow, and they are often looking for affordable, yet quality and reputable, trucks. This is the space we want to operate in, as we are able to provide these operators with the opportunity to own a premium brand truck, with low kilometres, in good quality and with the Volvo stamp of approval.”

Market values for used trucks are determined by in-house appraisers. The price offered is guided by the market-related value of the trucks.

Volvo Financial Services offers a range of truck financing options.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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