Class 8 auction volume has remained steady but well below the second half of 2015, according to analysis of the commercial truck market by the National Automobile Dealers Association.
Auction volumes in the NADA study’s benchmark group of 2011-2013 models was down about 6% from April. Model year 2013 trucks have lost about 13% of their value through the first five months of 2016. Used 2012 MY trucks and 2011 MY trucks have lost 18% and 11% of value, respectively.
When translated to a monthly number, used 2011-2013 Class 8 trucks lost about 3% of value per month. This is positive compared to the second half of 2015, when trucks in the same categories were losing 5% of value per month.
"One item we're keeping our eye on is a steep increase in the number of daycabs hitting the auction lanes,” said Chris Visser, senior commercial truck analyst at NADA Used Car Guide. “We haven't yet published in-depth analysis of the daycab segment, but keep in mind this increased volume will impact market pricing."
Lower used truck pricing should improve demand as late-model trucks become less expensive every month, according to the NADA report. That factor is more likely to help buyers with older trade-ins than those looking to purchase a truck outright.
Buyers with newer trade-ins are likely to get lower than expected trade offers and may opt to repair a vehicle rather than replace it, according to the report. A negative freight environment may also limit the market and it may remain that way for the next few months.
The NADA Used Car Guide provides vehicle valuations, services and information to businesses, collecting and analyzing automotive and truck wholesale and retail transactions per month. NADA's guidebooks, auction data, analysis and data solutions offer information and solutions to help businesses make informed decisions.