Used Class 8 Auction Unexpectedly Weak

Commercial truck analysts at J.D. Power Valuation Services note in their June 2017 Commercial Truck Guidelines Industry Update that May’s Class 8 wholesale auction results were unexpectedly weak, with volume and pricing notably lower than April.

Major findings in the monthly report point out:

• Auction market contracted in May.
• Volume and pricing off compared to first quarter and April.
• Seasonality does not completely explain the pullback.
• Economic conditions haven’t changed and there are other factors still to be discovered.
• Medium duty market remains stable.
• Strength of market is concentrated in newer, lower mileage units.

When asked about what May’s Class 8 auction results mean for the used commercial truck market, Chris Visser, senior commercial truck analyst at J.D. Power Valuation Services said, “The month’s figures are disappointing and the incoming retail data is moderately concerning. However, the first four months of the year are encouraging, and we have not identified a shift in market conditions. We still define the Class 8 environment as incrementally improving.”

The complete  June 2017 Commercial Truck Guidelines Industry Update can be found here .

 

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