IN THE MARKETPLACE FOR A LIGHT COMMERCIAL?

Jarlath Sweeney Editor of Fleet Transport Magazine

Purchasing a new light commercial? Are you a first time buyer? Or maybe need to upsize or downsize to meet your present requirements? Well, the Irish marketplace is loaded with choice for the business user or tradesperson, writes Jarlath Sweeney.

For the initial investment, choosing the most suitable van or light truck for the task in hand can be a difficult decision. Ultimately, the new owner must obtain the maximum from the vehicle in order to generate return on investment, which can stretch from €13,000 for a car-derived-van to €48,000 for a high-roof large panel van. Of course, once the hand slapping is done, some reimbursement can be made in that the VAT on the overall price of the vehicle can be claimed back as can the VAT on the diesel used, provided the business is registered for VAT.

APPRECIATING BUYER NEEDS

While attending the Commercial Show in Birmingham recently, an interesting presentation was made to the press by Mark Lovett, newly appointed LCV Sales and Marketing Manager for Nissan. In announcing plans to increase the Japanese manufacturers presence in the highly competitive light commercial market place, he gave a unique insight into commercial vehicle buyer’s specific requirements. Looking from the other side of the counter as it were, the typical target customer for the light commercial dealer is the local small business operator running one vehicle or a small fleet.

It is the retailer or tradesman that comes under their microscope here. In essence it is essential the customer build a good, solid and trusting relationship with the dealership. Lovett highlighted that the customer is looking for a commercial vehicle dealer who understands his/her business needs and provides a service in a way that minimises downtime. “This customer wants a commercial vehicle dealer that differentiates itself versus the competition and to offer the most professional sales and after-sales service,” he said.

Research First

It is important therefore to have some homework done before entering dealership’s doors. Firstly, consider the type of work that the vehicle will be doing on a day-to-day basis. If in the retail business can the vehicle double-up to undertake home deliveries and to collect goods from the Cash & Carry? Home bakeries, for instance, may only need a small volume vehicle but may have to be adaptable to accommodate a refrigeration unit in order to maintain the cold chain from source to shop. Tradesmen, on the other hand, need a vehicle that will take all their gear as well as raw materials for their work.

Choose the right category

Another vital element to think about is the actual size of the vehicle as urban streetscapes dictate where and when one can park. Its overall gross weight is another factor as any vehicle above 3.5 tonnes GVW requires a Digital Tachograph, which means licensed drivers must hold a ‘Smart Card’ issued by the Department of Transport.

Once you have got the size right, next thing is choosing the vehicle itself. There are nine separate categories within the Light Commercial sector from car-derived van, panels vans, commercial SUVs and 4x4s to light trucks and passenger vehicles. On average 60,000 new units are sold in Ireland each year. Presently, such is the range of vehicles on offer from all the manufacturers involved that business purchasers are really spoilt for choice.

TEST OUT THE BEST

Alas, it would be impossible to list out all the makes and models available in this article, suffice to state that the best suggestion is to try out a few different manufacturers and take test drives before making that ultimate decision. Tradespeople in specialist fields see the benefits of having a commercial Sports Utility or 4x4 Pick- Up in their yards. The big advantages of these vehicles are their all-wheel-drive capability and the high torque levels available from the diesel engines fitted.

Final Checklist

During that test run consider the vehicles driveability, functionality, build quality and cost of ownership. Don’t forget about running costs such as motor tax, insurance and maintenance, not to mention depreciation and trade-in value when that time comes around.

At the end of the day, it’s often down to the location and service provided by the authorised dealership. Admittedly, there is quite an amount to consider. Best to draw up a checklist of what you require from the light commercial and tick-off the boxes as you assess each vehicle. Carefully examine the financial aspects of the purchase from day one through to trade-in time.

ABOUT JARLETH SWEENEY
Jarlath Sweeney is editor of Fleet Transport Magazine. He is an Irish Jury Member for International Truck of the Year and International Van of the Year.

Published in the July/August 2007 Issue of Irish Entrepreneur