As the first of the Euro 6 trucks are starting to appear on the used truck market and on the pages of trucklocator.co.uk we asked truck journalist, Steve Banner to investigate whether a used Euro 5 truck will be worth more than a more complex Euro 6 truck of similar vintage and miles. If you are in the market for a late used truck, then read on…
George Alexander, Chief Editor, Commercial Vehicles, Glass’s
“Euro 6, because if you go Euro 6 you are future-proofing yourself against the risk that more and more cities will introduce Low Emission Zones (LEZs) and because the fuel consumption story accompanying it has turned out to be a good one. Any early reliability problems appear to have evaporated and ten years from now we’ll be wondering why we had this conversation.
“During all the discussions at Glass’s over which would be worth more we never said it would be Euro 5. There was a frenzy of debate about it, and a lot of doubt, but the most pessimistic situation we ever arrived at was that Euro 5 and Euro 6 would be worth the same money.
“Our view now is that all the fears surrounding Euro 6 were over-played and that it will attract a premium, but it won’t be a vast one; it will be a modest step-up. Remember that Euro 6 has been accompanied by the introduction of new cabs in many cases and that’s an influencing factor in its favour too.
“People forward-bought new Euros 5s in their droves and it was unnecessary; and very few operators who bought new Euro 6s paid the sort of premium the manufacturers were looking.”
James Davis, Director of Commercial Vehicles, Manheim Remarketing
“I’d have to say Euro 6 if only because Euro 6 trucks are so rare in the used market at present. Euro 6 does of course future-proof you to a degree against LEZs and Euro 6 vehicles will still carry what’s left of the manufacturer’s warranty.”
Rael Winetroube, Head of MAN TopUsed
“If you are comparing like-for-like Euro 5 and Euro 6 trucks – same make, model, condition and mileage – then you have to give it to Euro 6 because it will be so much more fuel-efficient. It is likely to have been face-lifted too so that will add on a few more percentage points.
“If we’re talking about tractor units then the premium is likely to be £2,000 to £2,500 and around £1,500 to £2,000 for rigids. Second-hand Euro 6 models are still a rarity of course so that will help them initially.”
“Selling used Euro 6 trucks into export markets in six or seven years time may be problematic because they won’t want the technology any more than they want the technology associated with Euro 5. I suspect a lot of people will be kept busy downgrading these vehicles to a lower Euro rating before they are sold overseas.
“It is of course no secret that MAN has had problems with early Euro 5 EGR tractor units but we are resolving them. Although they have pushed residuals down a tad, models that have not suffered difficulties have not been affected; and there has certainly been no impact on MAN rigid residuals.”
Paul Young, regional asset manager, UK, Italy and Spain, Paccar Financial Europe (DAF Trucks)
“In terms of absolute value – pound notes in other words – a used Euro 6 truck should make more money than a Euro 5 simply because it cost more new. As a consequence the used price difference might be £2,500 to £3,000 so far as a tractor unit is concerned.
“However if you look at things in percentage terms and consider what a three-year-old Euro 5 truck will make now compared with what a Euro 6 truck is liable to make in three years’ time then the rate of depreciation is likely to be similar. I see no reason why it shouldn’t be.”
John Biggin, Managing Director of Scania dealership TruckEast and Chairman of the National Franchised Dealers’ Association’s Truck Council
“It’s a difficult one but I believe that Euro 6 will have the edge because of the fuel advantage although I think the premium will be measured in hundreds rather than thousands of pounds: and fuel is of course more of an issue with tractor units than it is with rigids.”
John Fletcher, Managing Director, DawsonRentals
“Euro 6 models cost more than Euro 5s when new so they are going to be worth more in cash terms when they are sold second-hand. Euro 6 is far better on fuel, and while that argument has been weakened by the comparatively-low price of diesel at present, that situation will not last.
“Euro 6 helps hauliers future-proof themselves against LEZs. Although the technology is more complicated and there have been scare stories about problems with particulate filters, any problems should be eliminated once people get into the groove so far as the necessary maintenance regime is concerned.
“There is also the question of vanity to be borne in mind. Many firms want to be seen running the latest kit, and that’s Euro 6.
“Demand out there is quite strong for it. There is an audience.
“All that said, it is with tractor units that Euro 6 has the most sway. With rigids it is perhaps less important; the used buyer is more likely to be interested in whether a truck has the 28ft curtainsider body and cantilever tail-lift that he wants than whether it is Euro 5 or Euro 6.”
Lee Smith, director of independent used truck dealership Hanbury Riverside
“We’ve not sold a used Euro 6 truck yet and don’t expect to start doing so until September. There is no evidence that customers are hanging on for Euro 6 and at present demand for Euro 5 is very buoyant.
David Lewis, Regional Director, Imperial Commercials
“Euro 5 v Euro 6? It’s too early to say, but looking at the demand for new Euro 6 trucks and the acceptability of the product I would imagine the residual values of Euro 6 trucks will be much higher than those of their Euro 5 counterparts. I think that’s the view some operators are taking but it’s an unknown quantity at this stage.”
Dale Slee, Used Commercials Sales Manager, Mercedes-Benz North
“It’s early days to draw a comparison between Euro 5 and Euro 6 residuals, mainly due to the current low volumes of Euro 6 models entering the used vehicle market, Our forecasts would say that a Euro 6 truck will hold a higher premium over and above the price of a Euro 5.
“In the UK the first Euro 6 Mercedes-Benz trucks entered service in April 2012 and operators are reporting fuel consumption betterments across the vehicle range and reduced downtime thanks to extended service intervals. Naturally we believe that these savings will continue once these vehicles enter the used market.”
Matt Heath, General Manager of www.secondhandtrucks.co.uk, the fleet sales arm of Maritime Transport
“We do not have a feel for what Euro 6 trucks will be worth because as yet too few of them have entered the used market. They cost more new than Euro 5 trucks did however so logically they will be worth more second-hand.”