While the hurricanes of late summer causes regional slowdowns in some markets overall volume in the used truck market was up in September, J.D. Power reported this week in its Commercial Truck Guidelines Industry Report for October 2017.
The auction/wholesale sleeper market was the strongest segment of the used truck marketplace last month, with prices for two of three years in the MY 2011-2013 cohort seeing month-over-month price increases in J.D. Power’s benchmark model. The retail sleeper and medium-duty markets were mixed, J.D. Power reports, with the average sleeper tractor bringing more month-over-month but the 3- to 5-year old cohort seeing prices drop across the board.
Diving deeper into the auction/wholesale market, J.D. Power “pricing was relatively strong, with model year 2011-2013 trucks gaining 2.6 percent of their value month-over-month.” Those gains came from MY2012, which was up $1,361 (5.4 percent) month-over-month, and MY2011, which was up $1,390 (6.1 percent) month-over-month.
Looking at the larger wholesale market, J.D. Power says “average pricing in the first eight months of 2017 is running 3.0 percent lower than the same period in 2016.” This week’s report says the average sleeper tractor sold at auction in August was 70 months old, had 519,211 miles, and brought $26,447. Compared to July, J.D. Power says trucks sold in August were five months newer, had 13,807 fewer miles, and brought $1,765 less money. Compared to August 2016, the average sleeper sold this month was seven months newer, had 26,849 fewer miles, and brought $4,808 less money.
In the retail sleeper market, J.D. Power writes “late-model truck sold retail in August generally brought moderately less money than in July. There were no notable differences in the makeup of models or mileage month-over-month, so pricing differences in our averages appear to be a natural market movement.”
J.D. Power says the average sleeper tractor retailed in August was 73 months old, had 447,013 miles and brought $47,863. That was an increase of more than $300 against July, but nearly $3,400 less than August 2016. In the 3- to 5-year-old cohort, J.D. Power says 3-year-old trucks averaged $70,196, $4,580 lower than July; 4-year-old trucks averaged $52,936, $1,153 lower than July and 5-year-old trucks were $42,692, $1,932 lower than July.
From a volume perspective, rooftop retail sales slipped by just 0.2 units last month. J.D. Power says the first eight months of 2017 are running 0.5 trucks ahead of the same period in 2016.
The medium-duty market showed similar ages and mileages for available cabover trucks last month, J.D. Power says, though volume was down. J.D. Power reports August’s average cabover pricing was $14,076, which was $135 higher than July, and $365 higher than August 2016. Additionally, the Class 4 and Class 6 cabover markets showed similar numbers to July. J.D. Power says Class 4 trucks averaged $19,101 in August, which was $739 lower than July but $382 higher than August 2016. Class 6 trucks only averaged $17,218 in August, which was $421 lower than July and $8,248 lower than “an unusually high August 2016.”
Overall, J.D. Power reports “auction and retail pricing could show mild regional strength in the short term due to replacement demand in the areas most heavily affected by storms. The are more than enough sleeper tractors to meet this demand, but daycabs and construction trucks could benefit somewhat more notably.”
To read this month’s report in its entirety, please CLICK HERE.