Click to enlarge.The year began as expected in the auction and retail channels, with no real changes in pricing, and the new truck boom cycle is almost certainly behind us, according to the most recent J.D. Power Commercial Truck Guidelines market report.
With the seasonal lull in auction activity, very few units of J.D. Power’s benchmark model sold in January. The month’s figures looked stable, with the exception of trucks of model-year 2015, which showed a dip that can be explained by a high-mileage and low-spec mix of trucks sold, the report states.
- Model year (MY) 2016: $51,895 average; $2,520 (4.9 percent) higher than December
- Model year 2015: $39,125 average; $4,425 (10.2 percent) lower than December
- Model year 2014: $31,500 average; $500 (1.6 percent) lower than December
- Model year 2013: $29,700 average; $550 (1.8 percent) lower than December
- Model year 2012: $24,175 average; $825 (3.3 percent) lower than December
“There was essentially no depreciation in 2018 for 4- to 6-year-old examples of our benchmark model. On average, this group brought 21.5 percent more money year-over-year. We expect the supply and demand relationship to look more historically typical as 2019 progresses, resulting in more noticeable depreciation,” J.D. Power reports.
In the retail market, trucks sold in January continue to bring “strong money,” the report states, with depreciation nearly nonexistent month-over-month. There were fewer buyers in January, but those who did buy were paying similar money as the previous month.
The average sleeper tractor retailed in January was 70 months old, had 467,599 miles and brought $56,379. Compared with December 2018, the average sleeper was one month older, had 7,632 (1.7 percent) more miles and brought $856 (1.5 percent) more money. Compared with January 2018, this average sleeper was 1 month older, had 8,410 (1.8 percent) more miles and brought $5,181 (10.1%) more money. January’s average pricing was as follows:
- 3-year-old truck: $93,883; $3,238(3.6 percent) higher than January 2018
- 4- year-old truck: $77,560; $10,956 (16.4 percent) higher than January 2018
- 5- year-old truck: $61,540; $5,975 (10.8 percent) higher than January 2018
On a year-over-year basis, late-model trucks sold in 2018 brought 10.7 percent more money than in the previous year. Depreciation in 2018 averaged 0.3 percent per month, compared with 1.6 percent the prior year.
“Class 8 sales per dealership came in substantially lower than expected in late 2018 and January of 2019, dropping in January to 3.9. This is the lowest volume recorded since the Great Recession. January is more often than not a slow month for used truck sales, so we are not overly concerned about the result,” J.D. Power reports.
To read the full report, CLICK HERE.
