The predicted supply increase of Class 8 trucks didn’t happen in May, and strong demand is absorbing additional trucks that become available, J.D. Power reports in its most recent Commercial Truck Guidelines market update report.
Auction volume of sleeper tractors was lower than expected and the number of trades entering the market didn’t meet anticipated May levels, leaving pricing stable to slightly down. Using its benchmark model, J.D. Power says model year (MY) 2013 tractors averaged $30,500, $2,750 (8.3 percent) lower than April; MY 2012 averaged $25,750, $750 (2.8 percent) lower than April; and MY 2011 averaged $20,250, $5,250 (20.6 percent) lower than April.
“Year-over-year, trucks four to six years of age sold in the first five months of 2018 brought 18 percent more money than the same period in 2017. Late-model, low-mileage trucks are in relatively tight supply, but we expect this to change somewhat in upcoming months,” the report states.
The average sleeper tractor sold at retail in April was 81 months old, had nearly 460,000 miles and brought $49,299. Compared with the previous month, the average sleeper was five months older, had 3,102 (0.7 percent) fewer miles and brought nearly $800 (1.6 percent) more money. In April of last year, the average sleeper was seven months older, had 6,094 (1.3 percent) more miles and brought $878 (1.8 percent) more money, according to the report.
J.D. Power states average prices last month were as follows:
- MY 2016: $78,667, $5,898 (7 percent) lower than March
- MY 2015: $63,686, $1,931 (2.9 percent) lower than March
- MY 2014: $46,995, $440 (0.9 percent) higher than March
Class 8 sales per dealership dropped in April at just under 5 trucks per rooftop, 0.8 lower than March, according to the J.D. Power report.
Looking ahead over the long term, new truck orders remain high, which will add supply to a market expected to increase in coming months, the report states.
To read the full report, CLICK HERE.