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Class 8 Pricing Changing Rapidly

| April 17, 2020

Class 8 pricing pulled back in the second half of March, but volume was solid. Medium duty trucks were lower across the board in volume and pricing

In the April 2020 Commercial Truck Guidelines Industry Update, analysts from J.D. Power Valuation Services reported that Class 8 pricing pulled back in the second half of March, but volume was solid. Medium duty trucks were lower across the board in volume and pricing.

“During the month of March, America became hyper-aware of the trucking industry’s vital role,” said Chris Visser, commercial truck senior analyst at J.D. Power Valuation Services. “Volume and pricing at auctions were fairly strong and at this moment, freight measures have contracted back to pre-surge levels and then some. This should apply additional downward pressure to used truck demand.”

The volume of 4-7 year-old trucks sold at auction was healthier than expected in March, given the fact that most auctions moved to online-only. Pricing was flat to slightly lower than February in the first half of the month, dropping more notably in the second half. The pricing gap between lower mileage and higher mileage trucks is a wide as it’s ever been. See below for detail, keeping in mind the full-month averages don’t fully reflect the devaluation seen in the most recent weeks.

Major findings in the free monthly report note:

  • Pricing decreased sharply in recent 4 weeks
    • Volume still stable at auctions
  • Freight measures have pulled back to pre-surge levels
    • Downward pressure on used truck demand
  • Medium Duty trucks down across the board
    • Likely in for a challenging 2nd quarter

J.D. Power Valuation Services (formerly NADA Used Car Guide) is a leading provider of vehicle valuation products and services to businesses. The team collects and analyzes more than 1 million automotive and truck wholesale and retail transactions per month, and delivers a range of guidebooks, auction data, analysis and data solutions.

Category: Cab, Trailer & Body New, Equipment, Featured, General Update, News, Vehicles

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