The North American used commercial truck market returned to normal levels of activity in June, following a significant slump in May of this year.
That’s according to a new report issued by J.D. Powers & Associates on July 17, which states that Class 8 auction levels in June stabilized considerably, with volume up and prices dropping mildly. Retail sales prices also returned to more normal levels, with prices holding steady and minimal depreciation.
The report, which can be downloaded here, notes that average prices of used commercial trucks in the first five months of 2017 is running 6.8% lower than the same period in 2016.
The average sleeper sold in wholesale in May of this year was 5 years old, with 513,859 miles on the odometer and selling for $28,442. On the retail side of the equation, the average sleeper tractor sold in May was 72 months old with 448,696 miles, bringing $48,929. Compared to April 2017 figures, these trucks, on average, were 2 months newer, had 3,785 fewer miles on them, and brought in $460 more.
The report said that retail sales prices for 3- to 5-year-old trucks dropped by an average of 1.7% per month this year, an improvement over 2016, which saw prices falling by an average of 2.4% per month in the same period.
Average pricing by age shows 3-year-old trucks bringing in an average of $81,728, which was $6,677, or 8.9% higher than April. Four-year-old trucks brought an average of $60,675, which was $92, or 0.2% higher than in April, while 5-year-old trucks brought in an average of $44,900, which was $3,849, or 8.4% lower than the previous month.
Drilling down to specific models, J.D. Power noted that Peterbilt 579, Kenworth T680, Volvo VNL 730/780 and Freightliner Cascadia models all continue to outperform the market average.
Summarizing its Class 8 findings, the report stated that early estimates of poor results in May turned out to be “unfounded,” mainly due to dealers that reported sales earlier in the month sold fewer trucks than dealers reporting late in May, which skewed the firm’s initial market assessments.
In fact, J.D. Power says that May actually proved to be a strong month once all the numbers were in, with those results now putting 2017 used commercial truck volumes 0.6% ahead of 2016.
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