The medium-duty truck market continues its downward trend as wholesale prices continue to decline, according to new figures released from vehicle industry data provider Black Book.
The 2003 through 2010 model years and the 2011 through 2012 model years both had slightly higher decreases during June compared to May. These two groups dropped $189 and $447 respectively, a 1.1% decline for both groups.
“Does the latest report for new truck orders shed any light on the decreasing wholesale prices?” said Ricky Beggs, editorial director at Black Book. “The report shows that May orders for Class 5 through Class 7 trucks are down 10% year-over-year. Combine the drop in orders and the drop in wholesale prices makes you think that the demand for this type of truck has slightly declined.”
On the heavy-duty truck side he said the overall supply showing up at auction continues to be down. “However, the quality of these units seems to be improving, with more late models showing up at auction,” Beggs said. “This past month the late model trucks and tractors, from 2011 through 2012 year models, depreciated less than they have since March of this year.” These heavy-duty construction/vocational trucks dropped an average of $525, heavy duty over the road trucks dropped an average of $545 and regional tractors dropped an average of $601.
Black Book noted older heavy-duty trucks and tractors from 2003 through 2010 model years also continued a downward trend during June, however, these units are a little more stable than the late model heavy-duty trucks and tractors. These heavy-duty construction/vocational trucks dropped an average of $189, which is its smallest depreciation since May of 2013. Heavy-duty over the road trucks depreciated an average $204, a little more than last month, while regional tractors dropped an average of $175, which is its lowest depreciation since November of 2013.
Looking at the commercial trailer side of the industry, overall they are performing quite well, according to Black Book. “Seven of the 12 commercial trailer types we track have increased in value over the past four months, with an average increase of $550,” said Beggs. “Live floor trailers and chip-ag open top vans have performed the best, with a combined average increase of $2675, while the refrigerated vans and dump trailers have depreciated the most, with a combined decrease of $383.