In a two-week period, hurricanes Harvey and Irma wreaked catastrophic damage to large swaths of Texas and Florida (as well as other regions outside the continental US). As the Southwest and Southeast begin the process of assessing damage and rebuilding, it is likely that hundreds if not thousands of Class 8 trucks, and many more medium and light duty commercial vehicles, were totaled. This loss of property, combined with the need for construction trucks to participate in the rebuilding process, should result in a moderate increase in demand for commercial vehicles of all types in upcoming months.

The most notable shift in demand will be regional, but the effects should be felt nationwide. Dealer groups and OEM’s will transport their used iron to the areas where it will bring the most money, leaving fewer trucks to sell elsewhere. We expect to see continued stability in pricing or even increased pricing for certain segments. Construction trucks are already healthy, and that segment will certainly benefit from the rebuilding process. As for highway tractors, the need to replace flooded trucks should help to absorb the ongoing influx of incoming used trucks.

We will monitor auctions weekly, and make changes to our values to account for shifts in pricing. As we gather more data over time, we will perform more meaningful analysis. In the meantime, we would like to hear your experiences.