In its 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.
How are Class 8 Trucks Values Holding Year-to-Date?
- Model-year (MY) 2013 trucks have lost about 13% of their value.
- MY-2012 trucks have lost about 18% of their value.
- MY-2011 trucks have lost about 11% of their value.
As explained in the free June report, the above figures translate to an overall monthly value loss of about 3%, which is notably better than the 5% 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 day cabs hitting the auction lanes. We haven't yet published in-depth analysis of the day-cab segment, but keep in mind this increased volume will impact market pricing."0
The report concludes that — in general — lower used truck pricing should bolster demand as late-model trucks become less expensive every month. But, 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.
Originally posted on Work Truck Online