The 2008 model year is presenting a unique set of challenges when it comes to valuations. You’ve seen the fluctuation in value since January for that model year (see graph below). As with all late-model tractors, supply is constrained. However, another issue is exacerbating the volatility in our data.
As you know, a new round of emissions regulations went into effect for trucks built in 2007, carrying over to the 2008 model year. This round required new engine technology and DPF’s (Diesel Particulate Filters). Anecdotal evidence suggests many if not most 2008 trucks were built with stockpiled pre-emissions engines, but a good number were also built to the new standard. Due to regional demand for post-emissions engines (particularly in California, which requires “2008” emissions for many applications), there is a price gap in many markets for trucks equipped with pre- vs. post-emissions engines.
We have a strategy in mind to account for this difference in our valuations. Unfortunately, when it comes to incoming sales data, not every OEM chose to indicate emissions status in their VIN structure. In addition, our sales data does not always include VINs to begin with. As such, we are asking our dealers to indicate pre vs. post emissions engine in their sales reports going forward.
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