TORRENTIAL summer rains have brought a smile to the faces of many of the nation’s commercial vehicle dealers with sales soaring because of insurance claims for damage caused by the exceptionally wet weather.
According to EurotaxGlass’s, the prolonged spells of heavy rainfall have led to a boom in sales of commercial vehicles.
‘As a direct result of the exceptionally wet weather, more new and used commercial vehicle sales have been generated over the past four months than would typically have been expected,’ says George Alexander, chief commercial vehicle spokesman at EurotaxGlass’s.
‘If any vehicle suffers damage following a flood it will be subject to an insurance claim and probably rapid replacement.
‘Where roads and fields were flooded, some owners will have seriously considered acquiring a more rugged commercial vehicle to cope with such conditions. Here, we have already seen a market improvement for double-cabbed 4x4s following an earlier period of price instability.’
Not all dealers have benefited though. Explains Alexander: ‘There were winners and losers amongst neighbouring dealers. As with the flooding itself, the consequences for dealers in either benefiting or suffering from the aftermath was extremely localised.
‘Put simply, if it was their customer who suffered the loss or decided to change or expand his business as a direct result, then that dealer was quids in.’
And he believes that any positive implications of the recent inclement weather conditions are likely to be short lived.
‘The improvement in sales activity is unlikely to have any lasting effect on values, as used prices for nearly all popular commercial vehicles were already pushing hard on the ceiling imposed by discounted prices on new. What this unexpected and extremely localised blip has done is to soak up any additional used stock that would have appeared during what is traditionally a slow sales period.’