Remarketing

Wholesale Medium-Duty Truck Values Continue to Fall

Depreciation among wholesale medium-duty trucks continued to rise through July and August, according to Black Book's September Specialty Markets report.

In August, the value of medium-duty trucks from 2015 to 2016 fell 0.5% compared to the month before. In July, wholesale values were down 0.4% month over month.

Depreciation was steeper for units from 2007-2014, as values for these vehicles in were down 0.7% month-over-month in August and July.

"This past month we experienced a bit more depreciation than we did in June. Auction prices continue to drop on most of the units we track. The increased supply of box trucks is one driver," the report stated.

Dealers reported that retail demand was stable in the past two months, Black Book added. However, with post-Harvey cleanup efforts on the way, the firm expects demand for medium-duty trucks to increase in the coming months, as many of the vehicles in this segment are used in various forms of construction.

In addition, diesel prices have also been on the rise over the past few weeks. The national average for a gallon of diesel is $2.60, 11 cents more than the previous month and 23 cents more compared to the year before.

"Reports are indicating that fuel prices could increase in the near future. So, if you have a fleet of trucks or a tank at your facility, now is the time to call and get them filled up," the report stated.

Remarketing

The average price for used fleet vehicles fell 2% at auction in October, but remained 6.1% higher than a year ago amid a strong month for wholesale prices, according to Tom Kontos, KAR Auction Services' chief economist.

Vehicles from fleet consignors followed the broader used-vehicle market downward in September, as wholesale prices struggled to keep up with last year's hurricane-driven demand and a now robust upstream market, said Tom Kontos, KAR Auction Services' chief economist.

Six pickup trucks made the top-10 list of vehicles that retain the highest percentage of their value after a five-year ownership period, along with two Jeeps, a Subaru, and the Toyota 4Runner. At the other end of the spectrum, the Nissan Leaf saw the highest depreciation over the same period.

Used-vehicle auctions have started resuming regular business hours following the effects of Hurricane Florence, which had less of an impact on the U.S vehicle market than Hurricanes Harvey and Irma in 2017.