This week’s Black Book Market Insights report shows the truck segments deprecating only -0.9% last week, much less in comparison with the car segments which depreciated by -0.31% overall. Three specific truck segments increased their value including the Full-Size Van, Small Pickup, and Full-Size Pickup.
Volume-weighted, overall truck segment (including pickups, SUVs, and vans) values decreased by just 0.03% last week, better than the average decrease of 0.17% per week in the previous four weeks.
Sentiments from the auction lanes, according to Black Book, noted that "pickups were still king" and that dealers were paying high prices trying to buy nicer, lower-mileage trucks.
“Scarcity in used supply is helping to stabilize wholesale values," said Josh Giles, Senior Truck Editor for Black Book. "Overall, the medium-duty truck wholesale market continues its downward trend. Late model units (2014-2015) performed well in June. This segment dropped an average of $70 (0.02%) last month.Black Book noted that medium-duty buyers are running their units longer than they have in recent years, therefore used supply in many areas are limited."
Older units (2006-2013) also retained their values well in June. "These units dropped an average of $86 (0.05%). The strength of the pre-emissions units is forcing many 2006-2007 and older models to be worth just as much if not more than some 2008 and newer units. As used supply dwindles, these older units are more desirable than ever. It is going to be interesting to watch these units as more late models are released into the market, putting more pressure on the 2008-2016 model-year truck," Giles added.
In regard to the heavy-duty truck resale market, the Long Hood, Long Wheelbase Big Power Conventionals have lost a little of their grip on Value Retention and are dropping more in recent sales, according to Black Book.
"It started showing up a couple of months back, and towards the end of April and in May, these trucks, late models mostly, dropped quite a bit, although the older they get the depreciation slows up quite a bit. For a while, we have talked about how Over the Road Tractors continue to depreciate. Upstream venues have pulled some of the real nice used trucks out before they reach auction. This is another factor affecting the average sale price. There are still more buyers than sellers, so we expect similar results as long as this mismatch holds up. Conventional/ Vocational Trucks continue to do well," said Charles Cathy, editor - heavy duty truck data for Black Book.