Used Class 8 Depreciation Slows, Retail Traffic Increases
Depreciation of Class 8 vehicles slowed recently.
According to NADA Used Car Guide commercial truck analyst, Chris Visser, “As in the auction and wholesale lanes, depreciation in the retail channel moderated going into the second quarter. Three to five-year old sleeper tractors lost about 3 percent of their value from February to March, and we estimate another similar loss from March to April.”
Visser went on to say, “High-volume 2011 to 2013 model year trucks lost approximately 5 percent of their value from February to March. We also predict a similar drop from March to April. Retail pricing continues to decrease, and perhaps as a result, buyers are entering the market in incrementally greater numbers.”
When focused on retail sales volume, the free report notes there was an incremental increase from February to March of 4.8 to 4.9 trucks sold per rooftop, respectively. The first quarter of 2016 trailed Q1 of 2015 by 0.2 truck. Analysts expect minor volume improvements in the upcoming months as better weather and lower prices bolster demand.
According to NADA, “Looking forward, the report states the late spring and early summer months should see incremental improvements in demand as lower prices get some buyers off the fence.”
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