After the first month of the year, depreciation rates for medium-duty trucks are up and overall orders for the segment are down, according to Black Book’s Feb. 7 Market Insights Report.
After the first month of the year, depreciation rates for medium-duty trucks are up and overall orders for the segment are down, according to Black Book’s Feb. 7 Market Insights Report.
In January, model-year 2006 to 2013 trucks depreciated an average of 1.5%, compared to 1.4% the month before. Model-year 2014 to 2015 models depreciated by 1.2%, compared to 1% the month prior. Reports are also indicating that overall orders for medium-duty trucks have gone down, according to Black Book.
Ad Loading...
“It will be interesting to see how this impacts the market going forward," according to the report. "Will this help improve depreciation rates down the road as these units become more scarce? The current supply of medium-duty units is pretty steady, which is helping fuel the downward trend.”
Chart courtesy of Black Book.
Along with the issue of steady supply of a segment with tepid demand, the industry is also concerned about the rising cost of fuel prices, according to Black Book. The current average price for diesel is $2.59 per gallon, a 47-cent year-over-year increase and a 10-cent increase compared to the previous month.
Meanwhile, in the car and light truck segments, both cars and trucks posted the lowest levels of depreciation seen all year last week, according to the Market Insights report.
Ad Loading...
Volume weighted, overall car values decreased by 0.35%, compared to the average depreciation rate of 0.43% seen in the previous four weeks. In the truck segment, overall truck values decreased by 0.20%, compared to the average depreciation rate of 0.42% seen in the previous four weeks.
“Good sales and optimism from auction buyers reported across the country. Both car segments and light truck segments showed good retention in values with depreciation levels lowest in nine months,” said Anil Goyal, senior vice president of automotive valuation and analytics.
The best-performing car segments were the sub-compact and compact cars, which realized 0.05% declines to their average wholesale values, respectively. Premium sporty cars suffered the biggest weekly decline in wholesale value, falling 0.75%.
The best-performing truck segments were the compact crossover/SUVs, compact vans, and minivans. These segments saw average wholesale values drop by 0.06%, 0.06%, and 0.07% respectively. The truck segment to see the highest weekly depreciation rate was the sub-compact crossover, which depreciated by 0.70%.
Westport and Volvo are demonstrating a 500-hp truck with diesel-like efficiency — one that also offers what Westport says is a better pathway to using hydrogen fuel in trucks.
New sensor integrations and component validation signal a shift from strategy to execution as Kodiak and Bosch push toward high-volume driverless truck deployment.
The evolution of the modern truck was a long, slow affair. But perhaps no other company did more to establish the template for what a modern truck should be, and how it should perform, than REO.
Western Star has expanded its operator-focused Star Nation competition and outreach to spotlight skill, attract new drivers, and strengthen industry ties.
The all-new Volvo VNR is jam-packed with advanced safety features. Join HDT for a first-hand look at how Volvo is keeping drivers safer and productive on the road.
At Volvo’s New River Valley customer center, the all-new VNR proves that maneuverability, safety, and driver confidence can coexist in a regional-haul workhorse.
March trailer orders posted an unexpected monthly jump, but demand still trails historical norms as fleets prioritize power units over trailing equipment.
A new autonomous truck startup company is targeting yard, port, and short-haul freight with a lighter, fully autonomous platform designed for dock-to-dock moves.