May's used late-model truck prices continued to slip, J.D. Power pricing says, as market continues to work its way through pent-up supply.
As far as sales volume, May was similar to April and available trucks clocked high mileage, weighing down prices. Model year 2021 trucks saw the most significant drop in prices. In May, a 2021 truck benchmarked at $79,800, 21.8% or $22,200 lower than in April.
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"We've been saying for a few months to expect substantial swings in the model year 2021 average due to very low volume, and May's result was no exception," a J.D. Power report reads. "Most three-year-old trucks sold this month had extremely high mileage -- 170,000 per year of service -- which affected their selling price. Trucks with more typical mileage brought somewhat stronger money, although pricing across the board continues to decline."
Model year 2021 trucks have lost 46.3% of their value since May 2022. This year's monthly depreciation is averaging 6.5%, J.D. Power says.
The average sleeper tractor in May was 72 months old with 471,232 miles on the odometer. It was worth $72,064, J.D. Power says. Compared with April, May's average sleeper is four months older with 29,828 more miles and worth $2,503 less.
For two- to six-year-old trucks:
- Model year 2022 sold for $142,621, or 26.5% higher than April.
- Model year 2021 sold for $112,304, 1.6% lower than April.
- Model year 2020 sold for $83,332; 1.7% lower than April.
- Model year 2019 sold for $68,245; 1.6% lower than April.
- Model year 2018 sold for $53,890; 2.1% lower than April.
"Don't read too much into the monthly swings in our average for the 2022 model year," J.D. Power says in the report. "Low volume of sales combined with a shifting mix of trucks sold means a multimonth trend is a more reliable indicator of market performance for the newest used trucks."
Retail sales per rooftop averaged 2.8 trucks for May, up from April. Any uptick in sales is welcome, J.D. Power says, but demand is still weak.
The medium duty market was mostly stable, J.D. Power says. Depreciation has been essentially nonexistent, hovering at or near zero for the year.
"Ongoing demand from a wide variety of end users combined with the high price of new trucks are contributing to market strength," J.D. Power says.
