An increase in the number of new trucks delivered likely will create a greater volume of late-model trucks for sale is one of the findings in this month’s J.D. Commercial Truck Guidelines market report.
The September auction market came close to expectations, with an increase in sleeper tractors of most model years represented. However pricing for the report’s benchmark model was mostly lower, especially for 2015 trucks, which were affected by a higher volume of trucks with higher average mileage sold last month compared with August, according to J.D. Power. The percentage drop “is not representative of what to expect in the real world,” the report states.
Model year (MY) 2015 trucks averaged $38,000, $17,750 (31.8 percent) lower than August; MY 2014 trucks averaged $34,750, $1,750 (4.8 percent) lower than August; MY 2013 trucks averaged $27,750, $22,250 (7.5 percent) lower than August; MY 2012 trucks averaged $26,750, $2,000 (8.1 percent) higher than August; and MY 2011 trucks averaged $21,750, $1,250 (6.1 percent) higher than August.
Despite the decrease in value for the newest model years, the year-over-year average for trucks four to six years old is still positive, as these trucks sold in the first nine months of 2018 brought 20 percent more money than the same period a year ago.
In the retail market, the sale of used trucks in August was similar to the previous month, as pricing was virtually unchanged, according to the report. The average sleeper tractor retailed in August was 71 months old, had nearly 455,800 miles and sold for $53,480. Compared with July, the average sleeper was three months older, had 6,109 (1.3 percent fewer miles) and brought $184 (0.3 percent) more money. In August 2017, the average sleeper was four months newer, had 9,311 (2.1 percent) more miles and brought $5,662 (11.8 percent) more money.
J.D. Power states average prices last month were as follows:
- MY 2016: $82,884, $5,557 (7.2 percent) higher than July
- MY 2015: $62,299, $1,436 (2.3 percent) lower than July
- MY 2014: $50,333, $426 (0.9 percent) higher than July
Year over year, late-model trucks sold in the first eight months of 2018 brought 7.5 percent more money than in the same period a year ago. Depreciation is 0.4 percent per month this year, compared with 1.8 percent last year.
Class 8 sales per dealership was 5.2 trucks per rooftop with September data indicating similar results. The report also states August and September new truck deliveries were 16 percent higher than July, and September orders were 19 percent lower than August. “This shift suggest fleets are scaling back their build slot reservations as the actual build rate gets closer to “real-world need,” according to J.D. Power.
To read the full report, CLICK HERE.
