Used Commercial Truck Market Sees Late Summer Slowdown
Market stability forecasted with a 3 percent drop in prices through end of 2016
MCLEAN, Va., Sept. 20, 2016 /PRNewswire/ -- In their latest Commercial Truck Guidelines report, used commercial truck analysts at NADA Used Car Guide note the late summer has brought with it a slowdown in sales and prices in the wholesale and retail markets. Analysts forecast about 3 percent depreciation per month until the end of the year.
How Did the Wholesale Auction Market Perform?
According to the free monthly report, August's auction market saw volume of sold sleeper tractors down notably from July. Prices were moderately lower, with 3- to 5-year-old sleepers averaging an 8.5 percent decline versus July. Year-to-date, this group has lost an average of 2 percent per month, which is substantially better than the 5 percent per month depreciation of the fourth quarter of 2015. Prices have run roughly 30 percent lower year-over-year.
When the total wholesale activity is reviewed, which includes dealer-to-dealer sales, 3- to 5-year-old sleepers had a stronger performance in August. Average prices were less than 1 percent lower than July.
Chris Visser, senior commercial truck analyst at NADA Used Car Guide said, "The sweet spot in the wholesale market continues to be a 4-year-old truck with about 400,000 miles."
Is the Retail Market Looking Up?
Within the retail market, commercial truck analysts found depreciation relaxed in July after it declined from May to June. Three to five year old sleepers lost less than 1 percent of their value from June to July and have averaged about 2 percent depreciation per month since January. Compared to last year, truck prices sold this year have seen a 15 percent dip in price.
Where is the Used Commercial Truck Market Headed?
The used commercial truck market generally took a break from depreciation in July and August. The freight environment remains moderately negative, but the domestic economy — in general — continues to show incremental upward growth. We do not expect a notable change in conditions through the end of the year, so the safe bet is to expect roughly 3 percent depreciation per month going forward.
Get your free copy of the Sept. 2016 Commercial Truck Guidelines report.
About NADA Used Car Guide®
Since 1933, NADA Used Car Guide® has earned its reputation as the leading provider of vehicle values. NADA Used Car Guide® and its logo are registered trademarks of National Automobile Dealers Association, used under license by J.D. Power.
Media Inquiries
Ryan Morris, Sr. Manager, Public Relations
NADA Used Car Guide®, a division of J.D. Power
1-202-826-4029 | [email protected]
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SOURCE NADA Used Car Guide
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