MCLEAN, Va., Feb. 18, 2016 /PRNewswire/ -- According to commercial truck analysts at NADA Used Guide, a division of J.D. Power and Associates, slow wholesale commercial truck auction volume during January has led to high-volume selling in February.
"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," said Chris Visser, senior commercial truck analyst at NADA Used Car Guide. Visser went on to say, "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."
In terms of pricing, sleeper tractors 3 – 5 years of age lost about 20 percent of their value from the third to fourth quarters of last year due to this volume increase. Depreciation is expected to average roughly 4 percent per month this year, as opposed to around 1.5 – 2 percent last year.
The free monthly report observes the retail channel performed differently, with much lower volume than typical, and stronger pricing. December's pricing was essentially unchanged from November's on average, and it looks like January's was down moderately. Analysts also reveal in the report that dealers continue to protect retail value by holding onto trucks that can bring stronger money. The report states that after analysis, "We expect depreciation to accelerate moderately in the retail channel going forward."
The report concludes the industry is becoming more accustomed to the new normal of high volume. The invisible hand of supply & demand is defining pricing at new levels.
About NADA Used Car Guide
Since 1933, NADA Used Car Guide® has earned its reputation as the leading provider of vehicle valuation products, services and information to businesses throughout the U.S. and worldwide. Its editorial team collects and analyzes over 1 million combined automotive and truck wholesale and retail transactions per month. Its guidebooks, auction data, analysis and data solutions offer automotive/truck, finance, insurance and government professionals the timely information and reliable solutions they need to make better business decisions. NADA Used Car Guide® and its logo are registered trademarks of National Automobile Dealers Association, used under license by J.D. Power and Associates.
Ryan Morris, Sr. Manager, Public Relations
NADA Used Car Guide®, a division of J.D. Power and Associates
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SOURCE NADA Used Car Guide