The commercial truck wholesale market continued to meet analyst expectations and exhibited steady demand in July while the retail market remained stable but below 2016 numbers with minimal month-over-month depreciation rates, J.D. Power reports in its Commercial Truck Guidelines Industry Report for August 2017.
After a huge volume month in June the auction/wholesale sleeper market returned to industry averages in July. J.D. Power says prices in its benchmark model increased 8.1 percent last month compared to June, a “solid result which supports our position that prices are increasing.”
J.D. Power says July auction performance of its benchmark model was as follows:
- MY2013 trucks sold for $29,075 on average, $1,075 (3.8 percent) higher than June.
- MY2012 trucks sold for $23,250 on average, $1,518 (6.5 percent) higher than June.
- MY2011 trucks sold for $20,250 on average, $3,225 (15.9 percent) higher than June.
J.D. Power says the average sleeper tractor sold wholesale in June was 63 months old, had 512,804 miles and sold for $28,164. Compared to May, that tractor was three months newer, had 1,055 fewer miles and sold for $278 less money.
Looking at the first half of the year, J.D. Power says MY2011 and MY2012 trucks both depreciated slightly (2.7 and 1.3 percent, respectively), but that MY2013 “essentially lost no value.”
The company says: “Trucks four years of age are running through auction lanes in incrementally higher numbers but at a volume significantly lower than last year. Fleets and other owners of late-model trucks have adjusted their business models to compensate for lower pricing, and as a result are likely holding onto their trucks longer than usual.”
In the retail market prices remain below 2016 levels, but J.D. Power says small depreciation rates are allowing units to maintain their relative value better month-over-month.
The average retail sleeper tractor sold in June was 74 months old, had 443,714 miles and sold for $47,728. Compared to May, that tractor was two months older, had 5,245 fewer miles and sold for $1,222 less money.
Overall, J.D. Power says the retail sleeper market is averaging 9.1 percent lower prices through the first six months of 2017 compared to 2016, but that 2017’s monthly depreciation rate of 1.7 percent for 3- to 5-year old tractors compares favorably to the 2.4 percent average during the first six months of 2016.
J.D. Power says average pricing by age was as follows:
- 3-year-old trucks sold for $72,444, which was $9,284 (11.4 percent) lower than May
- 4-year-old trucks sold for $57,659 which was $3,016 (5.0 percent) lower than May
- 5-year-old trucks sold for $45,240 which was $3,285 (7.8 percent) higher than May
The medium-duty market also made an upswing in June, J.D. Power says, posting an average price for Class 3-4 cabovers of $17,369, which was $744 (4.4 percent) higher than May and $2,535 (16.8 percent) higher than 2016.
The conventional market also moved upward in June as both the heavier and lighter GVW segments increased, with particular strength in the lighter GVW segment.
In its final monthly forecast, J.D. Power says “Class 8 auction prices continue to look solid, with a strong month at the auctions and minimal depreciation through retail channels. Trucks with three to four years of age are still scare at auction compared to this time last year. Conditions have largely stabilized.”
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