Used Commercial Truck Market Has Subdued Price Movements
NADA Guides, since 1933, has earned a reputation of the leading contributor of vehicle assessment products, information and services to businesses in not only U.S. but worldwide. Every month, its editorial team analyzes collects and handles over a million trucks wholesale, combined with automotive and retail transactions. Under the license of J.D. Power and Associates, the company publishes its own guidebook, data solutions, auction data and analysis in relation to trucking, automotive, insurance, finance and government professionals, facilitating its customers with timely information and reliable solutions to make better decisions.
Analysts at the NADA Guide believe that the slow commercial wholesale truck auction volume has resulted in a high-volume selling in February 2016. In this regard, Chris Visser, the Senior Commercial Truck Analyst at NADA, was reported saying, “The volume of commercial trucks sold at the nation’s two largest no-reserve auction companies shook up the market last year, and the industry continues to adapt to this new normal.”
He further added, “January was a very slow month for auction, wholesale, and retail sales, but February returned to high auction volume. We’re keeping an eye on auction trends as we move through the remainder of the quarter.”
As far as pricing was concerned, three to five years old sleeper tractors lost about 20% of their value in the last third and fourth quarter of 2015 which led to an increase in its volume. The depreciation as opposed to last year’s 2% is expected to roughly average at 4% by the end of this year.
The monthly reports observed that retail channels were now performing differently with higher prices charged for typically lower volume trucks. Prices in December 2015 remained unchanged till November 2015, whereas January 2016 seemed to be down moderately. As reported by the experts and analysts, dealers were more likely to continue holding onto trucks that bring strong cash.
Analysts believe, “We expect depreciation to accelerate moderately in the retail channel going forward.”
The report concluded on a positive remark suggesting that the industry is becoming more adaptable and accustomed to the new normal. The new pricing levels will be a good sign in depicting the demand and supply chain for the industry, making user cars purchases more acceptable and in demand. – See more at: http://truckernews.com/used-commercial-truck-market-has-subdued-price-movements-p717-90.htm#sthash.BqAcbj9m.dpuf