Used Commercial Truck Market Stable Going into Q3
NADA Used Car Guide report lists cooling depreciation as contributor.
MCLEAN, Va., July 18, 2016 /PRNewswire/ -- A recent report from NADA Used Car Guide notes the commercial truck market appears stable as it heads into the third quarter. Depreciation has relaxed as buyers and sellers gain familiarity with the new normal of increased supply and lower trade values.
Chris Visser, senior commercial truck analyst at NADA Used Car Guide said, "Average pricing has not decreased much since March. The market is moving away from large-scale, across-the-board depreciation."
Visser went on to say, "Supply of sleepers in the retail and wholesale channels is too high, but pricing has largely adjusted to this new normal."
Wholesale Auction Performance
In the commercial truck wholesale auction channel, three- to five-year-old sleeper tractors have lost an average of 3 percent of their value per month. The drop is notably better than the nearly 5 percent per month drop in the second half of 2015. Analysis in the report forecasts volume to increase mildly in the third quarter, then fall in the fourth.
Used Retail Market Performance
In the retail channel, 2014 to 2012 model year trucks lost 12 percent of their value from January to May of 2016. This figure is very similar to the 13 percent lost in the same period of 2015. Visser notes absolute pricing is lower this year, with this cohort running 9 percent lower in the first five months of 2016 versus 2015.
What's Ahead?
Looking forward, the freight environment has turned moderately negative, but the domestic economy continues to show incremental upward growth. Aside from a mild increase in the number of sleeper tractors returning to the marketplace in the third quarter, there shouldn't be a notable change in conditions in the short term according to the report.
About NADA Used Car Guide
Since 1933, NADA Used Car Guide® has earned its reputation as the leading provider of vehicle values. Its editorial team collects and analyzes over 1 million automotive and truck wholesale and retail transactions per month. Its guidebooks, auction data, analysis and data solutions offer automotive/truck, finance, insurance and government professionals the timely information and reliable solutions they need to make better business decisions. NADA Used Car Guide® and its logo are registered trademarks of National Automobile Dealers Association, used under license by J.D. Power and Associates.
Media Inquiries
Ryan Morris | NADA Used Car Guide®, a division of J.D. Power and Associates
1-703-821-7165 | [email protected]
Video - https://www.youtube.com/watch?v=KjQGJVhcMqg
Logo - http://photos.prnewswire.com/prnh/20150514/216176LOGO
SOURCE NADA Used Car Guide
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article