MCLEAN, Va., Aug. 11, 2016 /PRNewswire/ -- An August report from NADA Used Car Guide notes the used commercial truck market has generally been stable the past three months. So far in 2016, auction prices have decreased less than 3 percent per month compared to nearly 5 percent per month in the second half of 2015.
Wholesale Auction Performance
When asked how the overall wholesale market has performed, Chris Visser, commercial truck senior analyst at NADA Used Car Guide said, "The sweet spot for pricing seems to be a 4-year-old truck with 400,000 to 500,000 miles. That type of truck has consistently brought pricing in the low to middle $40,000 range since January."
Visser went on to say, "That price range is attainable for many buyers, and the truck still has a year or two before a minor overhaul will be necessary."
Used Retail Market Performance
The August report points out the market is less positive on the retail side. Three to five year-old trucks lost more of their value than anticipated. Large groups of similar trucks brought average prices down. The cohort has lost 14 percent of its value so far this year, compared to 5 percent in the same period last year.
In general, NADA Used Car Guide analysts state in the August Commercial Truck Guidelines report the market is back to its typical 3 to 5 percent monthly depreciation rate. Analysts point out the behavior is a logical performance given current conditions. The freight environment remains moderately negative, but the domestic economy generally continues to show incremental upward growth.
The report concludes its forecast with no expectation of any significant market changes through the end of the year. The conclusion is based on past presidential election cycles, which typically keeps industry from betting on large investments.
About NADA Used Car Guide
Since 1933, NADA Used Car Guide® has earned its reputation as the leading provider of vehicle values. Its editorial team collects and analyzes over 1 million 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.
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SOURCE NADA Used Car Guide