The pricing for medium-duty trucks at auction was down for the second month in a row in September, according to J.D. Power’s October Commercial Truck Guidelines Industry Update.
Four- to seven-year-old Class 3-4 cabovers were down 11.7% month-over-month, Class 4 conventionals were down 5.7%, and Class 6 conventionals were down 10.5%, according to the report.
Looking at the first nine months of 2018, the average monthly depreciation for Class 4 cabovers is 3.4%, compared to 3.0% the year before. Class 4 conventionals’ average monthly depreciation during the same period is 0.6% compared to 1.6% the year before; and 1.7% per month compared to 2.6% per month for Class 6 conventionals.
One factor contributing toward class 3-4 cabovers’ performance is higher mileage, as the trucks that were sold in September had notably higher than average mileage on the odometer. The average price for a vehicle in this segment at auction was $11,089 during September.
The average price for a Class 4 conventional was $20,069 during the same period. The decline that Class 4 conventionals experienced in September broke a two months of consecutive price growth. Even though prices in September were down on a month-over-month basis, on a year-over-year basis, prices were up 9.8%.
Looking at the third quarter, Class 4 conventionals brought in more money at auction than heavier GVW units, according to the J.D. Power report.
The average price for a Class 6 conventional was $17,828 in September. Similar to Class 4 conventionals, Class 6 conventionals had experienced price stability for the past few months; September’s decline broke that streak of stability.
“There were no clear factors explaining the difference, other than mildly higher average mileage mix,” the J.D. Power report stated.
Year-over-year, Class 6 conventional pricing was up 4.5% in September.