Is the worst over for falling used truck prices?

Used truck prices fell about 4% a month in the first 10 months of the year. But the rapid rate of depreciation might be coming to an end.

“The past three months’ less-than-expected declines present mounting evidence of pricing stability,” said Steve Tam, ACT Research vice president. “We expect lower prices through the end of 2023, with a return to month-over-month growth toward the end of 2024.”

J.D. Power Valuation Services found month-over-month auction prices for the typical Class 8 sleeper truck fell in four of five model years. Trucks from the 2020 model year bucked the trend.

Four-to-6-year-old trucks sold for 4.6% less than in September. They priced out at 37.5% below capacity-constrained values in October 2022, Power reported in its November Guidelines newsletter. In the first 10 months of 2023, late-model sleepers sold for 41.7% below the historically inflated gavel prices in the same period of 2022.

Prices getting close to strong pre-pandemic period

Monthly depreciation in 2023 is averaging 4.4%. Values for the newest used model years available are just below the strong pre-pandemic period of 2018 or just over 20% lower when adjusted for inflation.

“The universal average was dragged down this month by weak selling prices of trucks older than four years of age,” said Chris Visser, Power director of specialty vehicles.

Source: freightwaves.com