Work Truck Solutions released its Q1 2024 commercial vehicle market analysis on Tuesday.
Inventory
The report showed a 93% year-over-year jump (12.7% quarter-over-quarter) in on-lot new vehicle inventory per dealer, with medium-duty leading the way, making up 52.4% of the on-lot inventory. An exception is new cutaways, which are down in volume 21.7% year-over-year (24% quarter-over-quarter). New commercial electric vehicles are up 67% year-over-year (51.5% quarter-over-quarter). Used inventory is down 18.6% year-over-year (8.4% quarter-over-quarter), Work Truck Solutions says.
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"As we unveil our Q1 2024 data findings, it's clear there is improved availability of new work trucks, vans and SUVs, which is welcome news to buyers after the last few years of restricted commercial vehicle inventory," says Aaron Johnson, CEO of Work Truck Solutions.
In addition to more inventory, days to turn is also up 21.8% year-over-year (12.5% quarter-over-quarter), sitting an average of 105 days in Q1. That's the highest mark since Q4 2020.
Increased inventories and days to turn is sparking renewed competition among commercial vehicle dealers, Johnson says, driving dealers to embrace more digital merchandising tools.
"These tools should also streamline operations by providing data analytics that aid intelligent stocking, marketing and inventory management strategies, and decision-making," he says. "A digital-first approach is increasingly crucial for commercial vehicle dealers.
Sales
A higher days to turn per dealer means lower new vehicle movement. Work Truck Solutions shows that, quarter-over-quarter, new vehicle movement was down 12.6%. Year-over-year, however, it was up 11.2%.
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The company says the lower quarter-over-quarter numbers are due at least in part to increased inventory relieving some pent-up demand, but also because of increased interest rates and pressures and considerations towards lowering emissions.
As a whole, the company reports that sales are virtually flat. Used vehicle sales fell, with the average number of work trucks and vans moved per dealer falling 10.2% quarter-over-quarter and 23.2% year-over-year.
Pricing
Prices are also holding the line in Q1, with a very slight quarter-over-quarter uptick of 0.1% and a 4.2% increase year-over-year. That said, the Q1 2024 average price of $58,913 is the highest average price to date.
Pricing for battery electric pickups has slipped with a 2.5% quarter-over-quarter decrease and 18.1% year-over-year. Average prices for used work trucks and vans also dropped 4.2% quarter-over-quarter and 2.9% year-over-year. These price drops reflect the rising median mileage of used work trucks and vans, Work Truck Solutions says, which has increased 6.9% quarter-over-quarter (7.8% year-over-year).
Vocation
Body type distribution quarter-over-quarter is stable, Work Truck Solutions reports, with service bodies holding the top spot. Year-over-year, vans are down and, as mentioned, cutaway inventory is also down, which may affect cargo and freight transport, plumbing, construction, contractor and HVAC customers.
"Events such as the pandemic, high interest rates and now the tragic destruction of the Francis Scott Key bridge remind us how important it is to stay vigilant in our customer focus," Johnson says.
