From the monthly archives: March, 2013

We are pleased to present below all posts archived in 'March, 2013'. If you still can't find what you are looking for, try using the search box.

Wholesale Market Absorbing Older, Higher-Mileage Trucks

In my last blog post, we took a quick look at the current retail sleeper market. Now we’ll look at the other piece of the puzzle, the wholesale market. Data reported to ATD/NADA from dealers and auctions shows that the average Class 8 sleeper sold wholesale in February for $24,481. Average mileage was 733,997, and average age was 95 months. Compared to last month, February’s results were $683 (or 2.8%) higher on price, 18,651 (or 2.5%) higher on price, and 5 months (or 5.0%) younger. Year-over-year, February 2013’s results were $15,834 (or 39.3%) lower on price, 164,685 (or 22.4%) higher on mileage, and 27 months (or 28.4%) older. The year-over-year results are eye-opening. Since the 4th quarter of 2012, age and mileage have been increasing notably. Last month’s average age, at 100 months, was the second-highest we’ve seen since the recovery began (the highest was in February 2010, at 107 months). And this month’s average mileage set a new record for that period. There is still a strong negat ...

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Retail Market Continues Unchanged

Final February sales data shows that the average selling price of a sleeper tractor that month was $49,524. Average mileage was 539,315, and average age was 78 months. These results are very similar to both last month and year-prior. See graph for detail. Specifically, February, 2013’s results were $800 (or 1.6%) higher on price, 3032 (or 0.6%) lower on mileage, and 1 month (or 1.3%) older vs. January, 2013. Year-over-year, February, 2013 was $433 (or 0.8%) higher on price, 7008 (or 1.3%) lower on mileage, and 6 months (or  7.7%) older. Overall, the sleeper market has been extremely stable since the 4th quarter of 2011. There has been movement within specific age and mileage cohorts, but on average, selling prices and mileage have not changed appreciably throughout that period. At the same time, one measure to watch is age. Sleeper tractors sold today are approximately 6 months older than those sold at the start of this period of stabilization (see graph). This difference is too minor to ...

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Relatively Strong Start to 2013 Sales Volume

2013 is off to a relatively strong start compared to the post-recovery average. Since the recovery began in late 2009, January and February have been relatively slow months for used truck sales, followed by a relatively strong March and April. Preliminary February results show 5.9 trucks retailed and 1.7 trucks wholesaled per rooftop. Compared to January, February’s retail result was 0.4 trucks (or 6.3%) lower, while the wholesale result was 0.2 trucks (or 11.8%) higher (see graph). The first two months of 2013 averaged 6.1 retail and 1.6 wholesale, which are 0.1 trucks (or 1.6%) higher and 0.3 trucks (or 18.8%) higher than same-period 2012, respectively. 2013 is currently leading the calendar year 2012 average by 0.1 trucks (or 1.6%) on the retail side and 0.2 trucks (or 12.5%) on the wholesale side. The big limiting factor on the supply side is the lack of used equipment with under 600K miles, which could be partly responsible for the recent uptick in wholesale volume. The big limiting factor ...

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March Commercial Truck Guidelines Are Available!

Sleeper market is mixed and the Medium Duty segments show strength in the March edition of Commercial Truck Guidelines, which is now available for download.

Possible Turnaround for Medium Duty Conventionals

According to data reported to NADA by auctions and dealers, wholesale prices for the most popular GVW classes stabilized in the 4th Quarter of 2012, and in the case of Class 6, reversed course to trend upwards (see graph below).

The Class 6 turnaround is particularly encouraging, since the higher pricing came despite greatly increased volume in the 4th Quarter. Increased price combined with higher volume suggests increased demand.

With heavy exposure to the rental and light construction markets, recent movement in these segments suggests that improved consumer spending may finally be trickling down to the used truck market.

Stay tuned for deeper analysis of the medium duty market in the March edition of Guidelines, available later this week.