In their most recent “Guidelines” report covering the commercial truck market, NADA Used Car Guide analysts found Class 8 auction volume has remained steady, and well behind the inflated numbers of the second half of 2015. The study’s benchmark group of 2011-2013 models was down about 6 percent from April.
Medium duty truck averages dropped significantly during April.
Class 8 Trucks Values Year-to-Date:
- Model Year (MY) 2013 trucks have lost about 13 percent of their value.
- MY2012 trucks have lost about 18 percent of their value.
- MY2011 trucks have lost about 11 percent of their value.
As explained in the free June report, the above figures translate to an overall monthly value loss of about 3 percent, which is notably better than the 5 percent monthly loss in the second half of 2015.
According to Chris Visser, senior commercial truck analyst at NADA Used Car Guide, “One item we’re keeping our eye on is a steep increase in the number of daycabs hitting the auction lanes. We haven’t yet published in depth analysis of the daycab segment, but keep in mind this increased volume will impact market pricing.”
Outlook for Commercial Trucks:
The report concludes that, in general, lower used truck pricing should bolster demand, as late-model trucks become less expensive every month. However, this factor primarily helps buyers with an older trade-in or those looking to purchase a truck outright. Buyers with newer trade-ins may balk at unexpectedly low trade offers, and opt to repair rather than replace. Uncertainty about the increasingly negative freight environment is also a limiting factor. This may be the status quo for the next few months.
Weak month for medium duty trucks:
Higher volume combined with an older mix of trucks impacted April’s averages for the medium duty segment. “During the month, this cohort brought a mileage adjusted average of $11,697. This figure is a whopping $6,450 (or 35.5%) lower than March, and $7,019 (or 37.5%) lower than April 2015,” NADA reports on page 5 of its June report. “Market conditions have not changed appreciably in recent months, with no clear factors placing upward or downward pressure on this segment.”
