The continuing strong levels of new-truck sales in Canada (28,170 Class 8 tractors in 1999 through November, up 5.4% compared to the similarly red-hot pace of 1998) has triggered an upsurge in increasingly younger trade-ins - and a drop in trade-in allowances for certain common models.
"We're seeing trades at the two-year point these days, which used to be almost unheard-of," says Frank Oliveira, manager of the used-truck SelecTrucks operation at Freightliner of Canada. "Operators are putting kilometers on their equipment at a much higher rate than previously, yet they still want to be able to show a dealer that there's a worthwhile amount of original warranty coverage left."
However, for a 3- or 4-year-old fleet-spec'd linehaul sleeper, trade-in valuations have plummeted. "We're still wide-open for trade-ins, but you have to work harder to keep on top of what to offer," says Don Woodworth, used-truck manager at Brentwood International Trucks in Moncton, N.B. "A truck that was worth $40,000 (Canadian) two months ago might only be worth $30,000 or $32,000 in today's market."
Daycabs and heavy-spec'ed units (especially if the latter is applicable to on/off-road environments) have been retaining their value the best.
"We're seeing trades at the two-year point these days, which used to be almost unheard-of," says Frank Oliveira, manager of the used-truck SelecTrucks operation at Freightliner of Canada. "Operators are putting kilometers on their equipment at a much higher rate than previously, yet they still want to be able to show a dealer that there's a worthwhile amount of original warranty coverage left."
However, for a 3- or 4-year-old fleet-spec'd linehaul sleeper, trade-in valuations have plummeted. "We're still wide-open for trade-ins, but you have to work harder to keep on top of what to offer," says Don Woodworth, used-truck manager at Brentwood International Trucks in Moncton, N.B. "A truck that was worth $40,000 (Canadian) two months ago might only be worth $30,000 or $32,000 in today's market."
Daycabs and heavy-spec'ed units (especially if the latter is applicable to on/off-road environments) have been retaining their value the best.
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