Demand for Used Used Trucks to Remain Flat

According to ResearchAndMarkets, which is issuing the report, “many owner-operators and other smaller fleets are still uncomfortable with the low used truck prices and so are not willing to dispose their old trucks.” The group that there is now a high supply of 3- to 5-year-old trucks with increasing mileage, resulting in sustained low prices in the market. Dealer lots having high-mileage trucks are unappealing to buyers in the market, leading to an increase in new truck sales over the short term.

Truck specification will play a key role in determining the valuation of used trucks. There is a strong demand for higher-displacement engines in the used truck market. There is also an increasing trend toward AMT transmission in the line-haul tractor segment due to the fuel efficiency improvements offered. Freightliner Cascadia registered the highest volume among sleeper tractors sold in 2016, while Kenworth emerged as the strong player in the vocational market. Volvo and Mack trucks are finding higher acceptance in the construction segment due to the improved freight environment.

Digitization, big data, and analytics are making strong inroads in the used truck market. They enable OEMs and dealers to automate their customer outreach campaigns, generate large lead volumes, reach target customers, and facilitate in the management of optimal inventory based on vehicle valuation and regional pricing.