Prices are feeling the pinch again in August, J.D. Power says.
[RELATED: Used market sees stable auction, falling retail pricing in July]
Late-model Class 8 trucks brought 11.3% less money than in July, the valuation service says, which is 33% less than last August. Monthly depreciation in 2023 is averaging 4.3%, says the September 2023 Commercial Vehicle Market Update.
J.D. Power also says it's seeing more issues in the auction channel. Trucks are turning up with missing titles, unverified mileage and other issues. Those vehicles are not counted in the company's average. Also increasing: The number of four- and five-year-old, off-lease trucks. These are primarily 13-liter engines with extremely high miles.
The average sleeper truck sold in August 2023 was 71 months old with 448,552 miles. It brought $64,566. Compared with July, the average truck sold was newer, but had more miles and brought less money. Compared with last August, it was three months older, had 1.4% more miles but brought in 59.5% less money than 2022's average sale.
Trucks that are three to five years old brought an average of 7% less money than July and 37% less than August 2022, J.D. Power says. The first eight months of this year averaged around 30% less than the same period last year. Late-model sleepers are roughly at parity with the last strong pre-pandemic period of 2018 in nominal dollars. Adjusted for inflation, that's about 20% less.
Daycabs are still holding their value better than sleepers, losing only 3.1% per month this year to date. Just like with sleepers, though, a larger volume of lower-spec trucks is moving through the marketplace, pushing down the averages.
August's retail sales per rooftop increased 0.2% from July to three trucks. Potential buyers are still dealing with negative equity, higher interest rates and tougher credit requirements.
Bids on Yellow's rolling stock end Oct. 13 with an auction, if needed, set for Oct. 18. The newest trucks on Yellow's books should go to competitors, J.D. Power expects, and the older, single-axle daycabs will potentially enter a market with little demand for that type of truck. Looking ahead, J.D. Power expects a substantial number of off-lease trucks to continue to roll through both auctions and retail channels, with market dynamics unfolding as expected into the fourth quarter.
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